1099-C

What is Form 1099-C?

Form 1099-C reports canceled or forgiven debt of $600 or more, which is generally treated as taxable income to the debtor unless an exception or exclusion applies.

It shows the amount of debt canceled, the date of the identifiable event, and other information the debtor uses to determine how much, if any, must be included in income.

Who needs to file Form 1099-C?

• Financial institutions such as banks, credit unions, credit card issuers, and certain government agencies that cancel or forgive $600 or more of a debt owed by a debtor.
• Entities must file Form 1099-C when an identifiable event occurs, such as a discharge in bankruptcy, foreclosure, repossession, or agreement to settle the debt for less than the full amount owed.

What's New for Tax Year 2026

Instructions for Form 1099-C emphasize that creditors should not report cancellations of fraudulent debts resulting from identity theft and clarify when one form can satisfy both Form 1099-A and 1099-C reporting.

Guidance further explains how to determine the date of the identifiable event and how to handle subsequent payments on previously reported canceled debts.