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February 24, 2025
Question

Cancellation of debt 1099-C

  • February 24, 2025
  • 1 reply
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I have already filed my 2024 taxes. My total income was $77,097. I filed as Single, itemized and had to pay federal taxes of $1145. Got a refund of state of $1950. However, I just received a cancellation of debt 1099-C form for $5917. However will this affect me? I live in Georgia. 

1 reply

February 24, 2025

Unless you qualify for an exclusion, you will have to amend your tax return to include the additional income and will most likely owe additional tax for federal and state.  See Topic no. 431, Canceled debt – Is it taxable or not?