1099-C

Did you receive a form 1099-c?

 

What’s a 1099-C?

 

A 1099-C reports Cancellation of Debt Income. A lender is supposed to file a 1099-C form if it “cancels” $600 or more in debt.  It files a copy with the IRS and is required to send a copy to the taxpayer as well.

1099-C and Credit Reporting

When you receive a 1099-C form you should review your credit reports. You can go to www.freecreditreport.com to view your Experian report and www.creditkarma.com to view your Equifax and TransUnion report. Locate the account in which a 1099-C form was issued. See if the account is still reporting a balance. An account where a 1099-C account was issued should not report a balance as the debt has been cancelled. If you have a questions regarding the reporting of a 1099-C account please call us today so one of our debt specialists can speak to you and educate you on your options.