Which amount is shown as income on a 1099-C CANCELLATION OF DEBT form?

[monacostev]

My wife received a 1099-C for 2019 as a result of having a portion of a debt discharged at her request. She paid approximately $3000 but had an additional $1477 discharged resulting in the 1099-C form. Box 2 shows $1477.06 (amount discharged) & Box 3 shows interest of $793.25 & states "Interest if included in box 2". Box 4 = credit card. Box 6 = "F" (by agreement). Which amount counts as income? I'm guessing it's Box 2 but not sure why they show interest "if included in Box 2".

Thank you!

Steve M.

[DavidS127]

Yes, the box 2 amount on your 1099-C is the amount that represents the income to you.

To enter your 1099-C, click the "magnifying glass Search" icon on the top row, enter "form 1099c" in the search window and press return or enter, and then click on the "Jump to form 1099c" link to enter your 1099-C.

TurboTax will guide you through the process reporting your 1099-C income correctly.

[monacostev]

Thank you very much for your quick & accurate response. Very much appreciated!

Regards & stay safe & healthy!

Steve M.