Maybe. Did you receive a 1099-C (Cancellation of Debt) in 2023?
Amounts that meet the requirements for any of the following exceptions aren't cancellation of debt income [not taxable]
EXCEPTIONS to cancellation of debt income:
- Amounts canceled as gifts, bequests, devises, or inheritances
- Certain qualified student loans containing loan provisions for cancellation based on length of employment in certain professions for a broad class of employers
- Certain student loan discharges after December 31, 2020, and before January 1, 2026
- Amounts received or forgiven under certain student loan repayment assistance programs
- Amounts of canceled debt that would be deductible if you, as a cash basis taxpayer, had paid it
- A qualified purchase price reduction given by the seller of property to the buyer
IRS Topic no. 431, Canceled debt – Is it taxable or not?
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