Note: The exclusion for canceled debt on a primary residence has not been extended to tax year 2018. 

In certain cases, yes. Although the IRS generally considers canceled, forgiven, or discharged debt as taxable income, there are exclusions and exceptions to the rule.

When you enter your 1099-C in TurboTax, we'll ask a series of questions to determine if some of all of your 1099-C debt can be excluded.