I had cancellation of debt but did not receive a 1099c from the credit card company yet. How long should I wait?

[wilcox5]

I had cancellation of debt but did not receive a 1099c from the credit card company yet. How long should I wait?  Do I have to report it if I do not receive a 1099c?

[MargaretL · Accepted solution]

You don't have to report anything on your tax return until you receive form 1099-C.  And it depends on the lender when they will issue the form.  The debt is considered cancelled once your lender/creditor no longer expects for that money to come and they close their books.  It may be a couple years before they decide to foreclose and cancel your debt and issue you the 1099-C form, although they often do it in the following year.  You may always call your credit card company and ask, but they don't often know the date when 1099-C may be issued. 

[syrillsanchez]

I am not sure this is correct. In the 2017 Publication 4681 it states:

Even if you didn't receive a Form
1099-C, you must report canceled debt
as gross income on your tax return unless
one of the exceptions or exclusions described
later applies.

How would I go about reporting forgiven debts if I do not have a 1099-c to go with them? Do I need to call the companies and request a 1099-c? What if they do not have one to give me yet? How would I report that company and the debt forgiven if they have not reported it yet? I am very confused about this. I only have one 1099-c and I should have about 9 of them from debts that were negotiated, paid off and partially forgiven this year.

[jketterer]

I would also like to learn the answer to syrillsanchez's question.

[Chloe2]

I have the same question...

[scoutloehr]

Apparently they don’t always send them to you but they do send to the IRS. So eventually you will get a letter from IRS saying you owe money bc your income has been adjusted. If you know the amount you can add it before this occurs but sounds like it’ll automatically happen prob the next year. For federal you prob just owe the money and don’t have to amend your return. Not sure about state but don’t forget about state!

[CQ]

I've got IRS letter now for 2017 tax year. Did not receive 1099-C then and still. What do I do now?

Please help! 

[lrbeeler]

I received several 1099-c 's from our Debt Relief Agency , however we do not have any taxable income.

What should we do?

[Critter]

@lrbeeler 

You  need to report the 1099-C forms on an income tax return and file it if required.

[lrbeeler]

How do I know if it required I guess is my question?

[Critter]

You are required to file if your income exceeds the following limits for 2019:

• Single, under 65 – $12,200.
• Single, 65 or older – $13,850.
• Married filing jointly, both spouses under 65 – $24,400.
• Married filing jointly, one spouse 65 or older – $25,700.
• Married filing jointly, both spouses 65 or older – $27,000.

[Hsiler530]

I receive a settlement offer from my credit card companey I had a balance of 2800.00 the offer they to settle was for $700.00 I paid them will I still need to pay tax on the balance ce on my  2023 tax

[JulieS]

Yes, the forgiveness of credit debt is taxable in the year it is granted, unless you are insolvent at the time. 

This means you can expect to receive a 1099-C with $2100 on it. Even if you don't get the form, it's still taxable.

Follow this link for more on reporting 1099-C.

Follow this link for more on insolvency.