How to Look Up a 1099-C Debt Forgiveness
- 1). Look for a Form 1099-C (Cancellation of Debt) in the mail from your lender. The form must be sent by the lender by Feb. 2 of the current tax year to all borrowers. If you do not receive one, contact your lender to notify it first before contacting the IRS.
- 2). Look in box 2 of the Form 1099-C. This is the amount of debt forgiven by the lender in the most recent tax year and is the amount reported by the lender to the IRS.
- 3). Enter this amount on lines 2 and 10b on the IRS's Form 982 -- Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) -- if the amount is for a reduction in debt for your principal residence (see Resources). You'll do this to receive tax benefits from the forgiveness.
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