ThomasM125
Expert Alumni

Deductions & credits

I believe you are asking if you have taxable income as a result of a cancelled debt even though you are disabled. It seems your disability does not qualify as a reason to excuse the cancelled debt from income. You can read more on the reasons you may be able to exclude cancelled debt from taxation in IRS publication 431. I don't see disability listed there as one of the reasons though, as per this excerpt from the publication:

 

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