1099C Credit Card debt

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  • arlo
    Senior Member
    • Feb 2008
    • 285
    #1

    1099C Credit Card debt

    I have looked at all the exceptions (TB 14-10) on this partial forgiveness of credit card debt and the person was not insolvent ( but very close) nor was it because of bankruptcy. Client received a 1099 C for $6039.00. Looks to me it is all taxable unless I am over looking something. Just want to get a feeling I have done the right thing. My first client with a 1099 C. arlo
    Tags: None
    • KBTS
      Senior Member
      • Nov 2005
      • 564
      #2
      You are correct, it all goes on Line 21 if there is no exception. Also make sure to check out your state rules for canceled debt as it might be different from federal. For example, canceled personal credit card debt is not income for PA purposes.

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