No, there is no provision for a deduction from Line 21 "Other Income" which is how 1099-C income is reported.
If you do not report the full amount as reported on the 1099-C the IRS will send a letter that the amounts do not match.
That being said, there are several ways you can exclude the income so I would advise you to review these exclusion criteria to see if that might be an option.
They are:
- Debt canceled in a Title 11 bankruptcy case
- Debt canceled to the extent insolvent
- Cancellation of qualified farm indebtedness
- Cancellation of qualified real property business indebtedness
- Cancellation of qualified principal residence indebtedness that is discharged subject to an arrangement that is entered into and evidenced in writing before January 1, 2021
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