Topic: Credit Card---cancellation of debt. Today, 04/27/22, I received a 1099 (cancellation of debt) from a credit card issuer for 2021.

They attempted to send it in February, but the address on file was not valid. I have already filed taxes for 2021. What shall I do--amend my taxes or wait until 2022? I also read something about insolvency but not quite familiar with this. Can you explain? I have more than $80,000 in debt, which includes student loans, this card and others. I currently receive SSI but attempts to earn a little throughout the year. I have not earned $1000 in the last two years.

413

Level 15

Apr 27, 2022 9:02:57 AM

The cancellation of debt must be reported in the tax year it was received. You posted that you filed a return but earned less than $1000. In that case did you even qualify to have to file?

Level 2

Apr 30, 2022 9:09:10 AM

Thanks! I was on the phone with a specialist for the same issue before getting your reply.

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Topic: Credit Card---cancellation of debt. Today, 04/27/22, I received a 1099 (cancellation of debt) from a credit card issuer for 2021.