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Công cụ ước tính thuế xóa nợ 1099-C

Ước tính thuế liên bang trên nợ được xóa Form 1099-C với tùy chọn loại trừ mất khả năng thanh toán—100% riêng tư trong trình duyệt.

100% Private: 1099-C canceled-debt estimates run entirely in your browser—nothing is uploaded.

1099-C cancellation inputs

Enter boxes from your Form 1099-C. Results update as you type.

Canceled debt is ordinary income—no self-employment tax. Insolvency exclusion is capped at Box 2. Bankruptcy and other Form 982 exclusions are not fully modeled. Confirm with a CPA before filing.

Estimated results

Taxable discharged debt

$12,000

Estimated federal tax due

$0

Effective tax rate

8.0%

Insolvency exclusion

$0

Property FMV (Box 7)$0.00
State tax (approx.)$960.00
Marginal federal rate10.0%
Estimated federal tax due$0.00

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Frequently Asked Questions

What do Form 1099-C Boxes 2 and 7 mean?

Box 2 reports the amount of debt discharged (canceled). That figure is generally the starting point for canceled-debt (COD) income. Box 7 shows the fair market value of property in foreclosure or repossession situations—important context for your records, but this estimator still starts taxable COD from Box 2 unless an exclusion applies.

How does the insolvency exception work?

If your total liabilities exceeded the fair market value of your assets immediately before the debt was canceled, you may exclude canceled debt from income up to the amount of that insolvency. Enter liabilities minus assets, check the insolvency box, and this tool subtracts min(Box 2, insolvency amount) from taxable COD. File Form 982 when claiming the exclusion; this is a planning sketch only.

What about bankruptcy exclusions?

Debt canceled in a Title 11 bankruptcy case is generally fully excluded from gross income when properly reported. This tool does not model bankruptcy dockets—if your 1099-C relates to bankruptcy, treat taxable COD as $0 for planning only after confirming with a tax professional, and still keep the form with your records.

Is canceled debt subject to self-employment tax?

No. Cancellation of debt income is ordinary income for federal income tax purposes, not self-employment income. This estimator applies ordinary federal brackets only and never the 15.3% SE tax.

Is this official tax advice or are my figures uploaded?

No. This is a planning estimate using approximate 2026 federal brackets and average state rates. Calculations and PDF downloads run entirely in your browser—nothing is uploaded. Confirm with a CPA or tax software before filing Form 982 or your return.

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1099-C Cancellation of Debt Tax Estimator: Forgiven Debt & Insolvency in 2026

Form 1099-C reports cancellation of debt when a lender or creditor discharges $600 or more of indebtedness (thresholds and identifiable-event codes can vary). Box 2 shows the amount of debt discharged. Box 7 may list the fair market value of property when the cancellation relates to foreclosure or repossession. Many taxpayers are surprised that forgiven debt can be taxable ordinary income.

Canceled debt is not self-employment income. Your planning questions are how much of Box 2 remains taxable after exclusions, whether insolvency or bankruptcy applies, and what approximate federal and state income tax the remaining COD might generate. The insolvency exclusion generally lets you exclude canceled debt only to the extent liabilities exceeded assets immediately before cancellation.

This estimator starts with Box 2, optionally subtracts an insolvency exclusion capped at the discharged amount, applies approximate 2026 ordinary brackets by filing status, and estimates state tax with an average effective rate (0% in no-income-tax states). Box 7 is shown for context. Pair it with the 1099-R, 1099-G, 1099-INT, and freelance 1099 tools when your year includes retirement distributions, unemployment, interest, or contractor income.

The free 1099-C Cancellation of Debt Tax Estimator runs entirely in your browser with optional PDF download—no uploads and no account. Use it to sketch taxable discharged debt, estimated federal tax due, and effective rate before you file. It is an educational planning tool, not a substitute for Form 982 preparation or professional advice.