Sunday, August 2, 2009

Do I have to Include a 1099-C form on my state tax return?

My wife and myself received a 1099-C cancellation of debt form for our taxes this year. We didn't file bankruptcy or anything, just a credit card debt we got reduced. Anyway my question was does this have to be added to the state return as well?

Do I have to Include a 1099-C form on my state tax return?
Yes, as debt cancellation is a form of income.
Reply:on the PA web site:


i found under PA income tax Guide:


Cancellation of Personal Debt or Student Loans is NOT TAXABLE for PA personal income tax purposes..... The cancelation of a personal debt including stdent loans is not taxable... Revised 3/2008 ? Report It

Reply:on all of the state taxes that I have done the figuree that they use is taken from your fed. tax ; 1040 line 21 and that already includes your 1099C, if you are from a stae that requires you to file a copy of your W-2 then they waould want a copy the 1099C
Reply:yes


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