What is a Form 1099-C?

Information provided by PayPal is not intended to be and should not be construed as tax advice. For questions about your specific tax situation, please consult a tax professional.

Form 1099-C is used to report information to the US Internal Revenue Service (IRS) when a debt has been canceled, including as part of a discharge in certain bankruptcies. PayPal is required to issue Form 1099-C when a debt of $600 or more has been canceled. This may apply to products such as PayPal Working Capital, Global Pay Later (Pay in 4, Pay Monthly), and Business Loans.