Yes, you need to include the information from Form 1099-C on your tax return. However, some or all of the amount in Box 2 could be exempt from taxes. TurboTax will help you determine what portion (if any) is taxable.
Even if you receive a Form 1099-C from a lender, you still may be able to avoid taxation on the forgiveness of a debt. If your debt was discharged in a Title 11 bankruptcy proceeding, such as a Chapter 7 or Chapter 13 case, you're not responsible for taxes on that debt.
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