Rewards for Good is now AARP Rewards! Explore what’s new and claim your ‘Welcome’ bonus.
by AARP Tax-Aide, AARP, April 28, 2008
Q: I received a letter, which is a copy of a 1099-C. I’m not sure how to report this or what it is.
A: If a debt that you owe is canceled or forgiven, other than as a gift or bequest, you include the canceled amount in your income. Assuming that the debt was a non-business debt, you report the canceled amount on Form 1040, line 21. The amount to report is shown on the Form 1099-C in box 2.
These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided.
Please leave your comment below.
You must be logged in to leave a comment.
Get tips and resources to protect yourself from fraud and see the latest scam alerts in your state.
Members save 15% all day, every day at participating locations.
Exclusive program for members from The Hartford.
AARP members receive exclusive member benefits & affect social change.
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
Manage your email preferences and tell us which topics interest you so that we can prioritize the information you receive.
Explore all that AARP has to offer.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at