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The IRS website will be able to tell you which ones tax bracket you fall under. I've had clients ask me to test to negotiate the taxability of debt forgiveness. Unfortunately, no lender (including the SBA) has the strength to do such a product. Just like your employer is usually recommended to send a W-2 to you every year, a lender is needs to send 1099 forms for all borrowers which debt forgiven. That said, just because lenders are required to send 1099s doesn't imply that you personally automatically will get hit having a huge goverment tax bill.

Why? In most cases, the borrower is a corporate entity, and the just a personal guarantor. I am aware that some lenders only send 1099s to the borrower. Effect of the 1099 dealing with your personal situation will vary depending on kind of entity the borrower is (C-Corp, S-Corp, LLC, etc).