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Cancellation of Debt

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  3. Cancellation of Debt
  4. Is my cancellation of credit card debt taxable?

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.

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