Hi,

My client had 50K in credit card debt. She paid off 25K and the remaining 25K was transferred to New Credit America, which appears to offer personal and debt consolidation loans. In 2022, she paid off the remaining 25K loan balance but received 25K in 1099C's. She was not insolvent.

I would assume that the cancelled debt is not taxable since she paid off the loan. Any ideas on how to report this on the 1040?

Thanks!