Is cancellation of debt always taxable?

Cancellation of debt is not always taxable, although when your debt is cancelled and you save more than $600, the creditor is required to send you what’s called a 1099-C form. This form reports [...]

What is cancellation of debt?

Cancellation of debt is an IRS term. When you settle a debt, the creditor will issue you a 1099-C (“Cancellation of Debt”) form reflecting the amount of the debt cancelled through the settlement, [...]