My wife received a 1099-C for 2019 as a result of having a portion of a debt discharged at her request. She paid approximately $3000 but had an additional $1477 discharged resulting in the 1099-C form. Box 2 shows $1477.06 (amount discharged) & Box 3 shows interest of $793.25 & states "Interest if included in box 2". Box 4 = credit card. Box 6 = "F" (by agreement). Which amount counts as income? I'm guessing it's Box 2 but not sure why they show interest "if included in Box 2".
Thank you!
Steve M.
