Yes, if you received a 1099-C for Cancellation of Debt income reporting a canceled debt, then you will have to report that on your federal tax return. The IRS has already received a copy of the form for your income transcript. The taxability of this income will depend on whether or not you qualify for an exclusion or exception. Learn more at this TurboTax link, "Is canceled, forgiven, or discharged debt taxable?"
Once you've determined the CoD income that is taxable to you, you can follow the instructions from this TurboTax article, How do I enter a 1099-C?:
If your debt is canceled or forgiven, you'll receive Form 1099-C (Cancelation of Debt).
Note: If you received a 1099-C for your main home and another 1099-C for something else (like a credit card, car loan, or second mortgage) you won't be able to use TurboTax, as we don't support this.
To enter your 1099-C:
1. Go to the 1099-C screen under Wages & Income
In TurboTax Desktop:
Go to Federal Taxes.
Go to Wages & Income.
Go to Less Common Income and select 1099-C.
2. On the Tell us about your canceled debt screen, select the type of canceled debt (main home or other) and then select Continue.
3. Follow the onscreen instructions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
