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You need to talk to the Lender about the 1099C for the $10K, as the amount actually forgiven was only $1,300.

You need a letter that it is incorrect, and they need to notify IRS that the 1099C for the $10K is in error.

You will report the one 1099C for the $1,300, however make sure you have the documentation to send to IRS (only if asked, do not send it with return filed) about the 1099C for the $10K.

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