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tas3474
New Member

Where do I enter form 1099-C cancellation of debt on my PA state return

Turbo TAX could not figure out what to do with the 1099c on my PA State Return

1 Reply
JulieH1
New Member

Where do I enter form 1099-C cancellation of debt on my PA state return

Pennsylvania normally doesn't tax canceled debt unless it's business related.   (see below)

Cancellation of a personal debt, such as a credit card or other unsecured debt, is generally not taxable on PA Income Tax return UNLESS the debt is business related, or property used in a business.  

Cancellation of debt can also be income in instances where a mortgage on a principal residence is forgiven as a result of a foreclosure if the taxpayer didn't qualify for an exclusion of gain.    

Please see the following link for more detailed information about Pennsylvania Department of Revenue - Cancellation of Debt .

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