|| Form 1099-C Cancellation of Debt
If the amount of cancelled/forgiven debt is $600 or more, it is required for the creditor to issue a Form 1099-C lto the person(s) responsible for the loan.
If the amount of canceled debt is under $600, the creditor is not required to issue a Form 1099-C. However, the taxpayer may be required to report the cancelled debt as income regardless of the amount (ref Pub 4012 pg D-58).
Box 4 Debt description:
- The only type of cancelled/forgiven debt which is in-scope for AARP TaxAide is non-business credit card. Any/all other types of cancelled debt are Out of Scope.
Box 6 Identifiable event code
- Code A in this box means the taxpayer was bankrupt when the debt was cancelled and that makes the form Out of Scope.