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I got a Form 1099-C or 1099-A. What do I do now?

Do not panic, and do not throw it away. Form 1099-A tells the IRS your lender took the property. Form 1099-C tells the IRS a debt was canceled, which may count as income. Check every box for mistakes, ask the lender to fix errors, and then see whether an exception can lower or erase the tax.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

What is Form 1099-A?

Form 1099-A is called Acquisition or Abandonment of Secured Property. A lender sends it when it takes your property in a foreclosure, or when it learns you abandoned the property. It gives you facts you need to figure your gain or loss. If you borrowed with someone else, each of you should get one.

What is Form 1099-C?

Form 1099-C is called Cancellation of Debt. Banks, credit unions, government agencies, and other lenders must send it when they cancel 600 dollars or more of debt. If the lender forgave debt in the same year it took the home, it may put the foreclosure facts on Form 1099-C instead of sending a 1099-A. So you might get one form or both.

What the main boxes on each form mean
BoxForm 1099-AForm 1099-C
1Date the lender took the property or learned it was abandonedDate of the event that canceled the debt
2Principal you still owedAmount of debt canceled
3Not usedInterest included in box 2, if any
4Fair market value of the propertyDescription of the debt
5Checked if you were personally liableChecked if you were personally liable
6Description of the propertyCode for why the debt was canceled
7Not on this formFair market value of the property, if it was taken the same year

What do the codes in box 6 of Form 1099-C mean?

The code tells why the lender filed the form. A means bankruptcy. B means other court debt relief, such as a foreclosure in court. C means the time limit to collect ran out. D means a foreclosure that ended the lender's right to collect, such as when a power of sale in a deed of trust is used. E means probate. F means the lender and borrower agreed to cancel the debt for less than the full amount. G means the lender decided to stop collecting. H means another actual discharge.

How do I check the forms for mistakes?

  • Check your name, address, and the last four digits of your Social Security number.
  • Check the date in box 1. The date decides which tax year the event belongs to.
  • Compare box 2 with your last loan statement and any written approval for a short sale or deed in lieu.
  • Look at box 5. It shows whether the lender says you were personally liable. This can change your tax a lot. See recourse vs. nonrecourse loans.
  • Look at the fair market value. For a foreclosure, the IRS says the gross bid price at the sale is generally treated as the value. For a deed in lieu, it is generally the appraised value.
  • If you filed bankruptcy, check whether box 6 shows code A.
  • If you do not agree with the amount, the form's own instructions say to contact the lender. Ask in writing for a corrected form, and keep a copy of your letter.

How does the form affect my tax return?

  • The sale part. A foreclosure is treated like a sale, so you may have a gain or loss. A loss on your own home is not deductible. A gain on your main home may qualify for the home sale exclusion in IRS Publication 523.
  • The canceled debt part. Unless an exception applies, canceled personal debt is reported as other income on Schedule 1 (Form 1040), line 8c.
  • Exceptions. To leave out canceled debt for bankruptcy or insolvency, you attach IRS Form 982. See our insolvency worksheet walkthrough.
  • California. California may tax forgiven mortgage debt even when the IRS does not. See California vs. the IRS.

What if I never got a form?

The IRS says you must still report canceled debt as income unless an exception or exclusion applies, even without a Form 1099-C. For events in 2025, the forms were due to borrowers by February 2, 2026. If you expected one and it never came, call the lender and ask.

Who can help me?

A tax professional can look at your forms and your full situation. Free help may be available through the IRS VITA program at 800-906-9887. The IRS screening sheet for volunteers says some cases, such as homes once used as a rental or business, need a professional. Gather your papers with our tax time checklist.

General information, not tax or legal advice. We are not tax professionals. Sources: IRS Form 1099-A (Rev. 4-2025) and Form 1099-C (Rev. 4-2025) with their borrower and debtor instructions, IRS Publication 4681 (2025), IRS Publication 4731-A (Rev. 10-2024), and California Franchise Tax Board Mortgage Forgiveness Debt Relief page (updated 12/17/2025).

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