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Do I have to report as income on my 2023 tax return a US Bank claim for discharged debt of $2000 when I paid ca. $1000 of the debt? Social Security $14,484.

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Do I have to report as income on my 2023 tax return a US Bank claim for discharged debt of $2000 when I paid ca. $1000 of the debt? Social Security $14,484.

Did you receive a Form 1099-C, Cancellation of Debt?  If so, you need to report this on your federal tax return.

 

To enter a Form 1099-C

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Miscellaneous Income, 1099-A, 1099-C, click the start or update button


On the next screen, on Cancellation of debt (Form 1099-C) or the abandonment and/or acquisition of secured property (Form 1099-A), click the start or update button


Or enter 1099-c in the Search box located in the upper right of the program screen. Click on Jump to 1099-c

Do I have to report as income on my 2023 tax return a US Bank claim for discharged debt of $2000 when I paid ca. $1000 of the debt? Social Security $14,484.

If the 1099-C is for more than the amount you owe, please explain why?

 

Normally, the lender can not accept payment after they issue a 1099-C. 

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