Have you ever been issued a credit card that was charged off due to non payment? Did you know that a charged off credit card balance is considered taxable ordinary income, according to the IRS. Charged off credit card debt that is either canceled or forgiven may cause taxpayers to receive a 1099-C. A 1099-C is a tax form issued to taxpayers if they incur $600 or more in canceled or forgiven debt. The issuing company must be applicable entity which includes a: financial institution, credit union, federal government agency or a money lending company. Read the rest here.