Form 1099-C and How to Avoid Taxes on Canceled Debt
Did you know that the Internal Revenue Service considers forgiven debt a source of income, and have to pay taxes on that “income.” And if you’ve ever settled a debt for less or had debt forgiven entirely, you probably got a surprise in the mail come tax season: the dreaded Form 1099-C. Form 1099-C is the form you file to report debt-related income.
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