What type of debt typically requires a Form 1099-C to be filed?

A Form 1099-C, Cancellation of Debt, is specifically required to be filed when a lender cancels a debt of $600 or more. This form serves to report forgiven debt as taxable income to the borrower, as the IRS considers forgiven amounts to be income unless specific exclusions apply.

When a debt is canceled, the borrower may need to recognize that amount as taxable income on their tax return. This includes various types of canceled debts, not limited to one specific category, thereby encompassing a broad range of financial obligations. Since the requirement is triggered only when the cancellation occurs at or above the $600 threshold, option C accurately reflects this requirement.

The other options do not satisfy the conditions necessary for Form 1099-C filing. For instance, secured debts under $600 may not need to be reported, and while unsecured debts of any amount can lead to the necessity of a 1099-C, the key detail is the $600 threshold. Additionally, it's important to note that credit card debts, while often associated with canceled debts, are a subset of unsecured debts and do not define the overall requirement for the form. Thus, the stipulation of $600 or more for reporting captures the essence of the requirement succinctly.