Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Other Income, Form 1040 Line 21

Other Income

COD and HSA Topics

Often when a credit card debt is canceled, it must be reported as other income. The cancellation of debt for credit cards is in scope, but is not covered in this lesson. This topic is limited to nonbusiness credit card debt involving solvent taxpayers. Information on this topic is covered in an optional specialty lesson, Cancellation of Debt (COD) for volunteers with an Advanced, Military, or International Certification.

Certain Health Savings Account (HSA) distributions not used to pay or reimburse the taxpayer for qualified medical expenses are generally reported as other income on Form 1040, line 21. This topic is not covered in this lesson. It is covered in a specialty course for volunteers with an Advanced or higher certification.

These online courses, Cancellation of Debt (COD) and Health Savings Accounts (HSAs), are optional. Check with your Site Coordinator to determine if you should be certified in one or both of these topics.