However, many states will allow a deduction on the tax return for these contributions. (hrblock.com)
If you are self - employed, no problem, but you will definitely need to show proof of income on tax returns for the last two years. (firsttimehomefinancing.com)
The creditor will send you a 1099 - C, showing the amount of debt that was cancelled, and the cancelled amount is reported on your tax return as income. (nasonlawfirm.com)