1099-C Insolvency Calculator

If you settled debt and received a 1099-C, the insolvency exception (IRC 108) can exclude all or part of the forgiven amount from taxable income. This calculator estimates your insolvency immediately before each settlement event.

Liabilities (everything you owed at settlement date)

Mortgage balance

Auto loans

Credit card balances (all)

Medical bills owed

Personal loans

Student loans

Tax debt owed (IRS, state)

Other debts

Assets (fair market value at settlement date)

Cash, checking, savings

Home (fair market value)

Other real estate

Vehicles (used market value)

Retirement accounts (401k, IRA)

Investment accounts (taxable)

Personal property (used market value)

Other assets

1099-C Amount

Box 2 of 1099-C (canceled debt)

If you have multiple 1099-Cs, run this calculator separately for each settlement date.

Your Insolvency Calculation

Total Liabilities—

Total Assets—

Insolvency Amount—

1099-C Canceled Debt—

Excludable from Income—

Taxable Portion (if any)—

—

Educational tool only. This calculator uses the IRS insolvency formula but does not substitute for professional tax advice. Asset valuations must use fair market value (not insurance replacement value or sentimental value). Personal property is generally valued at used resale price (often 10-20% of replacement cost). Consult a CPA or Enrolled Agent before filing Form 982. Keep documentation supporting your calculation for at least 7 years.