Yes, you do. You must report as taxable income on
your return, any taxable amount of a cancelled debt for which you are
personally liable from the cancellation of debt. You must report the taxable
amount of a forgiven debt whether or not you receive a Form 1099-C.
Refer to Publication 4681 (2016), Canceled Debts, Foreclosures ... - IRS.gov ,
for more information regarding taxability of canceled debt, how to report it,
and related exceptions and exclusions.
- Open (continue) your return.
- In the TurboTax program, search for 1099-C or 1099C (lower-case works also) and then click the "Jump to" link in the search results.
- Select the type of cancelled debt (main home or other) and then click Continue.
- Follow the onscreen instructions to enter information from your 1099-C.
Note: We don't support both types of canceled debt if they were both reported on 1099-C. In this uncommon situation, refer to IRS publications 544 and 4681 before proceeding, or consult with a professional tax preparer.
