Form 1099-C Instructions: Box-by-Box Guide

Q: When is the deadline to file Form 1099-C for the 2026 tax year?

The recipient copy is generally due by February 01, 2027. The IRS deadline is March 1, 2027, for paper filing and March 31, 2027, for electronic filing. If a deadline falls on a weekend or legal holiday, the deadline generally moves to the next business day.

By Charles Hardy | Last Updated: Oct 09, 2026

Key Insights: Form 1099-C Instructions

Form 1099-C reports cancellation of debt. Financial institutions, credit unions, federal agencies, and other businesses that regularly lend money file it when they cancel a debt of $600 or more.
The filing is triggered by an identifiable event, such as a bankruptcy discharge, a settlement for less than the full balance, or a decision to stop collection. Box 6 records which event occurred, using codes A through H.
Form 1099-C must be filed whether or not the debtor ultimately owes tax on the canceled amount.
Filing 10 or more information returns of any type combined makes e-filing mandatory.

Before you start: what you will need

Form 1099-C reports four categories of information: who the creditor is, who owed the debt, how much was canceled, and what event caused the cancellation. Every box on the form supports one of these four categories.

Have the following ready before filing:

Creditor’s name, address, TIN, and a telephone number for debtor questions
Debtor’s name, address, TIN, and account number, if one is assigned
The date of the identifiable event
The amount of debt canceled, and whether it includes any interest
A description of the debt, such as a credit card balance or mortgage
Whether the debtor was personally liable for the debt
For foreclosures or abandonments, the fair market value of the property

Form 1099-C box-by-box instructions

Box 1, Date of identifiable event

Enter the date the identifiable event occurred. If you canceled the debt before an identifiable event and choose to report it then, enter the date you actually canceled the debt.
Box 2, Amount of debt discharged

Enter the amount of debt canceled. For lending transactions, you only need to report stated principal. Fees, penalties, and administrative costs are not required.

The amount cannot exceed the total debt minus anything you received toward it, such as through a settlement, foreclosure sale, or short sale.

For example, a borrower owes $25,000 in principal and you accept $15,000 in full settlement. Box 2 reports $10,000.
Box 3, Interest, if included in Box 2

Reporting interest is optional. If you include interest in Box 2, you must also enter that interest amount in Box 3. If Box 2 contains principal only, leave Box 3 blank.
Box 4, Debt description

Describe the origin of the debt, such as student loan, mortgage, or credit card expenditure. Be as specific as possible.

If you are filing a combined Form 1099-C and 1099-A, also describe the property. For real property, this is generally the address.
Box 5, Debtor personally liable

Check this box if the debtor was personally liable for repayment when the debt was created or, if modified, at the last modification. This tells the debtor how to treat the cancellation and any related foreclosure on their return.
Box 6, Identifiable event code

Enter the code, A through H, for the event that triggered reporting. Box 6 is covered in its own dedicated section below.
Box 7, Fair market value of property

Complete this box only when filing a combined Form 1099-C and 1099-A for a foreclosure, abandonment, or similar event in the same year. For a foreclosure or similar sale, the gross foreclosure bid price is generally the fair market value. For an abandonment or voluntary conveyance in lieu of foreclosure, enter the appraised value.

For a short sale, include the appraised value of the property.

Form 1099-C Box 6 instructions: identifiable event codes explained

Form 1099-C is triggered by an identifiable event, not simply by a creditor writing off a debt. The event decides which year you report in, what date goes in Box 1, and which code goes in Box 6.

Identifiable event codes

Code	Identifiable event
A	Discharge in bankruptcy under title 11 of the U.S. Code
B	Cancellation in a receivership, foreclosure, or similar federal nonbankruptcy or state court proceeding
C	Expiration of the statute of limitations, or of the deadline for a claim or deficiency judgment
D	A foreclosure election that by law bars the creditor from collecting the debt
E	Cancellation in a probate or similar proceeding
F	An agreement between creditor and debtor to cancel the debt for less than full payment, such as a short sale or settlement
G	A creditor decision or defined policy to stop collection and cancel the debt
H	Another actual discharge before any of the events above

Applying the codes correctly

Code A applies only when you must report the bankruptcy discharge, which is when your records show the debt was for business or investment purposes. Report it in the later of the year the discharged amount can first be determined or the year of the discharge.

Code C applies only when a court upholds the debtor’s statute of limitations defense in a final judgment and the appeal period has ended. The passage of time alone is not an identifiable event.

Code D applies to a mortgage lender barred by local law from collecting after exercising a power of sale in the mortgage or deed of trust.

Code G covers both written policies and established business practices. A practice of abandoning a debt after a set period of nonpayment counts as a defined policy.

Code H applies only when you choose to report an actual cancellation that happened before any identifiable event.

Common Form 1099-C filing mistakes

Filing for debt canceled due to identity theft. Form 1099-C is only for debts the debtor actually incurred. Fraudulent debt should never be reported.
Reporting interest in Box 2 without Box 3. Interest is optional, but if it is in Box 2, it must also appear in Box 3.
Reporting more than the unpaid balance. Box 2 cannot exceed the total debt minus amounts received through settlement, foreclosure, or short sale.
Treating time passing as an identifiable event. An expired statute of limitations counts only after a court upholds the debtor’s defense in a final judgment.
Filling Boxes 4, 5, and 7 when also filing Form 1099-A. When you file both forms for a foreclosure, leave these boxes blank on Form 1099-C.
Sending one form for joint debtors on large debts. For debts of $10,000 or more with joint and several liability, each debtor gets a form showing the full canceled amount.
Leaving out the creditor’s telephone number. A central number for debtor questions is required on every Form 1099-C.

Filing your 1099-C once it is complete

Once all applicable boxes are completed, Form 1099-C can be filed by paper or electronically. With the FIRE system retiring at the end of 2026, e-filing is the more sustainable option regardless of current filing volume.

To e-file with TaxBandits:

Step 1: Create a free account.
Step 2: Select or add the creditor filing the return.
Step 3: Enter the required Form 1099-C details, following the box-by-box instructions above.
Step 4: Review all entries, then transmit to the IRS.

E-File Form 1099-C Now, starting as low as $0.80/form.

Frequently asked questions

Form 1099-C is required when a covered creditor cancels a debt of $600 or more and an identifiable event has occurred. Separate cancellations of the same debt are not combined to reach $600 unless they are part of a plan to avoid reporting.

No. Reporting interest is optional. If you choose to include interest in Box 2, you must also show that interest separately in Box 3.

Not if the foreclosure and the debt cancellation happen in the same calendar year. You can file Form 1099-C alone and complete Boxes 4, 5, and 7. If you file both forms, leave those boxes blank on Form 1099-C.

You do not need to file an additional or corrected Form 1099-C when you receive a payment on a debt reported in a prior year.

No. When fraudulent debt is canceled because of identity theft, do not file Form 1099-C. The form is only for debts the debtor actually incurred.

Form 1096 is required only for paper filing. It is not required when filing electronically.

The recipient copy is generally due by February 01, 2027. The IRS deadline is March 1, 2027, for paper filing and March 31, 2027, for electronic filing. If a deadline falls on a weekend or legal holiday, the deadline generally moves to the next business day.

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