1099c cancellation debt

[GrumbleJones]

I received a 1099c for partially forgiven debt negotiated through a management co.  Turbo Tax site states "Tip: If your creditor is still trying to collect on your debt, it's not considered cancelled, forgiven, or discharged. There is no taxable income to report, not even if you got a 1099-C from the creditor."  Well in my case, I am sending negotiated settlement money to this credit card company that sent me the 1099c.  Do I report this money or not??

[DianeW · Accepted solution]

Yes, report the debt cancellation on your return.  Your statement indicates that you received the Form 1099-C for the part of the debt that was forgiven.

1. Sign into your Turbo Tax account (online or desktop)

2. Use the search box in the upper right

3. Search for 1099c

4. Jump to 1099c

5. Enter your information