Cancellation of Debt

Is my cancellation of credit card debt taxable?

If debt on your credit card was cancelled, you must report the cancelled amount as income on Form 1040 line 21 unless you were insolvent immediately before the cancellation or the cancellation occurred in a Title 11 bankruptcy case.

Need Professional Help?

If you need help with "Cancellation of Debt" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.