How do I file taxes on forgiven loans?
An example of an AI chatbot conversation about filing taxes on forgiven loans.
How do I file taxes on forgiven loans?
When you have a forgiven loan, it may be considered taxable income. You should report it on your tax return.
What forms do I need to fill out for that?
You typically need to fill out Form 1040 and possibly include Form 982 to report the cancellation of debt.
Are there any exceptions to this rule?
Yes, certain types of forgiven loans, like those under the Public Service Loan Forgiveness program, may not be taxable.
What if I received a 1099-C form?
If you receive a 1099-C, it means the lender reported the forgiven debt to the IRS, and you should include that amount in your income.
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