IRS Form 1099-C Explained with Form 982 for Cancelled Debts

2023 Update: IRS Form 1099-C is filed when a creditor forgives debts owed by the debtor. Under U.S. tax rules, the dollar value of canceled debt is included in gross income under IRC Section 61. Under certain circumstances, however, a taxpayer may be able to exclude the amount of canceled debts from their income using IRS Form 982. In this example, we have a taxpayer with forgiven credit card debts. The taxpayer is claiming the insolvency exclusion to not include a portion of the canceled debts in their taxable income. For a larger database of tutorials, please visit our website and search for your question: DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials. #Form1099C #Form982 #CanceledDebt #IRS