What to do about a 1099-C Debt Cancellation form to the IRS

What is a 1099-C Debt Cancellation form and what do I have to do when I get it?

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44 Responses

  1. Cortney combs says:

    I sent this letter to a creditor and they sent me a letter back and said that the debt was paid already. But on my credit report it shows a charge off. What can I do about a charge off if this step doesn't work?

  2. Sea Life says:

    Big question I think everyone wants to know: When someone files
    insolvency form 982 with 1040 only (not bankruptcy) to get out from
    under a 1099-C debt does this "insolvency filing only", nothing with past reporting, go on your credit report and do your
    creditors get notified or is all this just between the IRS and you privately!! in
    Nevada. Thank you

  3. Cianna E says:

    Hello I received this 1099-C last week and I paid the debt once it was sent to a collections service with a settlement for less. Was I supposed to still receive this form?

  4. Social Change says:

    This is a great video. My colleagues and I needed this information during these times.

  5. Frantz Derilus says:

    Where do you report the 1099c on a 1040 tax return, can i report it on a schedule C

  6. JoAnn Thomases says:

    How about pre-paid no contract phones, you have to pay up front ?

  7. Monique Mejia says:

    When you get a 1099 c does this also make the collection drop off your credit reports?

  8. Thanh Le says:

    May I asked you a question?I bought a car still owed to finance company about $5000 but I just received 1099c from creditor showed amount of debt discharged was $9600 .What should I do?

  9. mr.wiseass says:

    I just got one to file with my 2020 taxes. Where on my 1040 form do I enter the 1099-c form. I’m confused

  10. lialex22 says:

    hello just came across your video I have a question? after I filed in 2019 received a letter from IRS 1099C old canceled debt(2012) for 24,.000.00 asking for 11,000.00 back taxes ? do I file a amended 2018 tax return, or can I add this income to my 2020 tax? since i made less than 2018, thanks

  11. Samantha Doneyson says:

    If i co-signed for a car and me and my brother both received this for do we both have to claim this on our taxes do we both need to claim this as an income on our taxes?

  12. Brandon Nunley says:

    So what if the debt was negotiated and paid by a debt consolidation agency?

  13. FellVoice says:

    I am on SSI Disability and I just received a notice from Bank of America that they have forgiven $4993.92 of $4993.92. Do I need to worry about paying taxes on this as income? Thanks.

  14. Michael Santos says:

    Is a debt cancellation the same thing as a debt settlement?

  15. Amanda Mechelle TV says:

    So what would be a good debt validation letter to send to the creditor and should I send it certified?

  16. Wendy says:

    What happens if you don’t have the forms anymore. How can I get them?

  17. Ken Steele says:

    I never got a 1099-C but the IRS said I owe $14,600 for a charge off on a car repo. Do I pay the whole $14,600 or just the taxes on this amount? Also, I am on S.S. and have a limit on wages earned until I turn 66 years old. Will S.S. look at this as wages and charge me 50% of this amount?

  18. Clay Adams-El says:

    I asked for a statement from back child support. I received it and will file a 1099 C. I will also file a 1040 listing it as income.

  19. RichIntenseQuest says:

    there was a company I paid a settlement less than agreed and paid a 1099c. and they are still reporting as if I owe the full amount.

    w9 form?

  20. face2face says:

    hi I just received one of these n the mail it is about 20 years old what do you suggest

  21. DragonFly Visions says:

    Excuse me but I have to correct you here. We the people are the shareholders of the corporation and we the people are not the debtors but the creditors the corporations are the debtors and we the people should be canceling the debt and have it returned unto us the creditors.

  22. wlw0622 says:

    I got a 1099-C from a debt collector Kroger but I never had a credit card from Kroger I called Kroger and they check their records and said the same that I never had a credit card with them what should I do the debt collector are portfolio and Kroger said they never deal with portfolio debt collector so what should I do.thanks reply

  23. Leonel Lomas says:

    I got one from Verizon after I filed this past year and I never asked for them to cancel this debt. It was forwarded to a collections company and then sent back to Verizon. After that they sent me that form after I filed my taxes. It still shows up on my credit report as a loan of some sort and I tried to open an account with Verizon to see if I could get approved and it denied me service because of a past due balance. So if the debt was canceled by Verizon why is it still showing a past due balance? I refuse to fill out the 1099 form if it still shows it active on my credit report.

  24. FRANK BANKS 7 says:

    can you ask them to delete bad report on your credit score too if you stop making payment before the send you that 1099C? and can you ask a refund of payment you make before you receive the form?

  25. scherri nealy says:

    Hello Sir,

    I am wondering if you could give me advice on a situation that has arisen regarding the 1099-C.

    I purchased a vehicle on credit when I lived in WI in 1999. I have since moved to TX.

    In 2001, the vehicle was repo'd in Houston, TX.

    I have rec'd a proposed amount of $3,598 for taxes filed in 2018. It includes cancellation of debt (1099-C) and a couple of other issues.

    My concern is the cancellation of debt. I never rec'd the 1099-C from the creditor.

    I have since called and stated I had no knowledge of this account and requested they send me proof. At this time, nothing has been rec'd from the creditor.

    Should I call the IRS?

    I'm thinking I can file Form 982 due to insolvency?

    Any advice you can provide will be much appreciated.

  26. T W says:

    Thank you for these great videos

  27. Mopar life187 says:

    What if you got a 1099c form and you already filed your tax what do you do

  28. Shay Bae3 says:

    I just got my 1099 C from a student loan through bank that was charged off and I made payments on the debt and even settlment and it was coded a G. I filed my taxes and I owe $3,000 to IRS. How can I get out of owing that $3,000?

  29. YANAMization says:

    @The Credit Repair Shop  Lyft took about 80% in fees. I did a 1099c for the fees. Also have ever heard of the w2 and 1099s are gift and estate tax forms?

  30. YANAMization says:

    Can I do a 1099c to get a reimbursement of fees paid?

  31. porkchop0316 says:

    What if I don't have to file taxes I'm disabled

  32. Tabitha Queen says:

    Thank you so much for this video, I'm not going to lie, I was totally going to skip this form and "forget" to enter it. But I'll do it and be done with it.

  33. Sothea Mam says:


  34. Sothea Mam says:

    It says (keep for your records)

  35. Sothea Mam says:

    What If i got one for 2016 and filed already. And now 2019 I got a 2016 again with the same amount, what do I do then. Help please

  36. Sothea Mam says:

    Thanks for the video

  37. F.U. T.V. says:

    I already filed my w2 tax form the irs already accepted my federal and state but this tip of form I got on 1-31-2020 what do I do am I in trouble please I’m scared I don’t want to go to court please give me good advice I really need some help

  38. Ben says:

    What do I do if I received this form AFTER I already filed my taxes?

  39. Phillip Mercurio says:

    What is the time line thay can do this? Is there a cut off period? I have debt buyers like sending this stuff after 9 and 10 years later 1099-c. Is that legal? I mean can they wait 20 years later and send a 1099-c? I don't understand why they wait so long.

  40. Laura Harris says:

    What's the process if you dont add the form with your return and now have owe a debt to the irs. Can you amend your return and include that debt?

  41. YANAMization says:

    form 982 reduction of tax attributes to avoid the tax for the 1099-c?

  42. YANAMization says:

    What's with the 1099-oid?

  43. Crypto Drag says:

    Let them audit. They never sign the audit under penalty of perjury.
    Also…can they prove income?
    Federal Reserve notes are debt. What did anyone recieve that was a positive? You dont have the burden to prove that. They must prove their claim.
    They are just debt collectors under FDCPA.

    Also.. A payment is not PROOF OF CONTRACT.
    A payment is just evidence of extortion when they fail to provide the orginal contract where you agreed to pay them ANYTHING.

  44. 222222e says:

    Stop letting these banks file a 1099 C on you and start filing it on them. When the bank writes off an alleged debt they receive a tax credit as a loss. The reality is the bank never loaned you any money, and received your promisory note as cash. They have not reported that to the IRS which they're required to do. Here is the definition of debtor per the 1099c The debtor may be an individual, corporation, partnership, trust, estate, association, or company. It is illegal for banks to lend money, so they take your loan contract as cash. You funded the whole thing and they are using you as the surety for the bank.

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