You will receive a 1099-C Cancellation of Debt form if a lender forgives more than $600 of taxable debt. You must include the amount of canceled debt on your federal tax return as a part of your ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas ...

・Starting January 1, 2026, forgiven federal or private student-loan balances may once again be considered taxable income. ・If forgiveness occurs in 2026 or later, you’ll likely receive Form 1099-C ...

When an unpaid debt is cancelled or extinguished, the borrower generally recognizes taxable income in the amount of the cancelled debt. However, the character of the income depends on the situation ...

Question: After losing my business and a temporary job, I fell behind making payments on my credit card debt. I am planning to file for bankruptcy protection to get out from under by overwhelming pile ...

Could your debt be reduced or forgiven? Take our financial relief quiz. Having an overwhelming amount of debt can make it seem impossible to ever improve your financial situation. After all, too much ...

Forbes contributors publish independent expert analyses and insights. Robert W. Wood is a tax lawyer focusing on taxes and litigation.

You won't owe the IRS money on your forgiven balance, but a handful of states tax canceled debt as income. Dashia is the consumer insights editor for CNET. She specializes in data-driven analysis and ...

If you have debt that is canceled by a lender, you may receive IRS Form 1099-C. Although you are no longer liable to repay the debt, you can’t simply forget about it. The IRS may consider the forgiven ...

Question: My wife and I filed for bankruptcy protection last year to get out from under an overwhelming amount of credit card debt. Will we have pay taxes on any forgiveness or cancellation of the ...