I received a 1099-C from a creditor (large enough to generate a 1099-C.) The amount discharged reads as $6,497.23.
I haven't engaged with this creditor for over 7 years.
I knew there was another smaller card from them so I did call and confirm that the other debt was discharged as well: The smaller card = $779.72 total discharged but principal was $498.09 (no interest or late fees) so they said that since the principal was under $600, no 1099-C was sent.
I have some questions:
Do I still report this second debt on taxes?
Do I do so as if I received a second 1099-C from the creditor and just input two separate but identical (aside from the amount) 1099-C forms?
Do I put the entire amount ($779.72) or the principal ($498.09)?
On the 1099-C that I have, the "amount discharged" seems like it may be the PRINCIPAL ONLY ($6,497.23) and not including interest or fees (old credit report from 2019 shows "Original Charge Off: $7,538") so I'm not sure. What is usually shown on there? It seems like it shows principal only and that I would report the principal only for the second one if I am required to. Please let me know what you think.
Thanks in advance!
