Canceled debt (1099-C)
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Can You Write Off Canceled Debt?
Short answer: Forgiven debt is usually taxable income, unless you were insolvent, bankrupt, or it's an excluded type like some student loans.
File Form 982 to claim an exclusion.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B23-00474
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Canceled debt (1099-C)
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Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Forgiven debt is usually taxable income, unless you were insolvent, bankrupt, or it's an excluded type like some student loans.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Forgiven debt is usually taxable income, unless you were insolvent, bankrupt, or it's an excluded type like some student loans. File Form 982 to claim an exclusion.
Category
- Personal Tax Deductions
personal deduction
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