Got a notice in the mail that debt was discharged and now I have to pay taxes on it

I have a question I normally do not file taxes as my only income is SSI. I have bad credit, during the pandemic used several credit cards and couldn't repay due to illness (hospitalized with blood clots).I had credit protection on my cards and so when this one in particular got out as a chargeback on my credit I disputed it.

Then I got this tax notice that a bank has forgiven the debt (listed as$2509 debt and I owe taxes.

Forgiven? I didn't owe it because I had credit protection for illnesses.

What happens if I just don't file taxes like normal. I have no other income. Can they make someone on SSI pay taxes like that?

Edit to add- if I do file can I get earned income tax credit or something to get a refund out of this!?

Please help with any advice. Thank you.