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Was the previous IRS form 1099-C income taxable? In some cases and in some tax years, canceled debt from your home mortgage was excluded from taxable income.
The topic is quite complex. See this TurboTax Help here.
However,
You may elect to back out the income.
IRS form 1099-C income may need to be reversed if some or all the income reported on the 1099-C is not accurate. Post the negative entry as follows:
The entry will be reported:
Make sure that you keep records of all transactions. Later, you may need to demonstrate to the IRS that this is not taxable income.
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