I am disabled. Is there an exclusion for me with my cancellation of debt? If not, then what this is that I need to report it as income?

Sounds like you had a debt cancelled and the creditor reported this "gift" as income for you. This is not an uncommon practice. If your only income is non taxable, this may wind up as a small amount due. I would contact the IRS or (better yet) an experienced tax preparer.

Agreed. Note that certain mortgage-related cancelled debts do NOT result in a Form 1099-C under a recently passed law.