Getting a debt wiped clean feels like an absolute win, but the IRS often sees it differently. Generally, when a lender forgives, cancels, or settles a debt for less than what you actually owe, the government treats that wiped-out balance as taxable income.
July 2026 Tax Due Dates
Upcoming July Tax Due Dates July 15 Employers: Deposit Social Security, Medicare, and withheld income taxes for June if the monthly deposit rule applies. Employers: Deposit nonpayroll withheld income tax for June if the monthly deposit rule applies. July 31 …