I received a 1099-C after I filed my returns. My returns were accepted so I am trying to file an amendment using the web based version if that matters. I can start the amendment and add my 1099-C but nowhere does it ask about or let me add a form 982 to claim insolvency. All it does is lead me to the end where I pay for TurboTax and submit. What am I missing?
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TurboTax does not support Form 982 for insolvency. The screen where you enter Form 1099-C says the following.
"Important info about your canceled debt...
In some situations, canceled debt can be excluded from taxable income. These situations might include bankruptcy or insolvency. If you think one of these exclusions apply to you, we recommend you have a tax pro review your situation."
In TurboTax Online there is no way to complete Form 982 for insolvency.
In the TurboTax Desktop software, you can complete Form 982 and the Statement of Insolvency in forms mode, but there is essentially no help or guidance. You have to know what you're doing. That's why consulting a tax professional is recommended.
So I guess I'll have to send those to the IRS via snailmail. It would have been nice if the support agent that called would have told me that to begin with. Thanks Champ!
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