Tayne Law Group

How does a 1099c affect me?

If you received a 1099c you may be wondering how that will affect you.

If you receive this form, don’t panic!  A 1099c may not affect you. A 1099-C is a “cancellation of debt” notice. This most usually happens when your creditor and you make a settlement for at least $600 less than the original balance. It is hard to determine whether you will be affected by this or not without discussing it with a certified tax professional. For example, you may be insolvent. This simply means that the amount of debt owed is more than the total of your income and wealth. Consult a tax professional to find out how settling debts may affect you.