This interview will help you determine if any of the debt canceled on your principal residence is required to be included as income on your federal tax return.
Information You'll Need
- Filing Status.
- Form 1099-C, Cancellation of Debt, received from your mortgage lender.
Note: This interview isn't designed to address the cancellation of debt that applies to a joint liability when debt was canceled in bankruptcy and only one individual filed for bankruptcy. Please refer to Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments (for Individuals).
The tool is designed for taxpayers that were U.S. citizens or resident aliens for the entire tax year for which they're inquiring. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year. For information regarding nonresidents or dual-status aliens, please see International Taxpayers.
Caution: Please note for 2018 and 2019, this topic doesn’t include the recently passed legislation that extended the discharge of qualified indebtedness. Until the update can be made, please see H.R. 1865, “Further Consolidated Appropriations, 2020”, Division Q.
Conclusions are based on information provided by you in response to the questions you answered. Answers do not constitute written advice in response to a specific written request of the taxpayer within the meaning of section 6404(f) of the Internal Revenue Code.
Estimated Completion Time: 10 minutes
Please Note: After 15 minutes of inactivity, you'll be forced to start over.
Caution: Using the "Back" button within the ITA tool could cause an application error.