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New Member
posted May 31, 2019 11:19:25 PM

I filed for Chaper 13 this past year. How do I include this on my taxes?

Is there a specific form(s) I need to complete?  Please help.

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1 Best answer
Expert Alumni
May 31, 2019 11:19:27 PM

No - there is no specific form for you to complete to indicate your bankruptcy.  And in general, bankruptcy will not have an impact on your income tax return; any debts that are discharged in bankruptcy are excluded from income. And if you are on a payment plan, you can still deduct your "applicable" deductions.

IF you ever receive a form 1099-C from one of the creditors for which debt will be discharged, it may be next year or in a couple of years... it will indicate a bankruptcy discharged debt.  Please be sure to report the form 1099-C and file form 982, which shows the debt was relieved in bankruptcy (it is recommended to use the Cd/Download product of Turbo Tax if that's the case or to contact one of your local tax professional to help you with the Form 982).

3 Replies
Expert Alumni
May 31, 2019 11:19:27 PM

No - there is no specific form for you to complete to indicate your bankruptcy.  And in general, bankruptcy will not have an impact on your income tax return; any debts that are discharged in bankruptcy are excluded from income. And if you are on a payment plan, you can still deduct your "applicable" deductions.

IF you ever receive a form 1099-C from one of the creditors for which debt will be discharged, it may be next year or in a couple of years... it will indicate a bankruptcy discharged debt.  Please be sure to report the form 1099-C and file form 982, which shows the debt was relieved in bankruptcy (it is recommended to use the Cd/Download product of Turbo Tax if that's the case or to contact one of your local tax professional to help you with the Form 982).

New Member
May 31, 2019 11:19:28 PM

That doesn't make sense to me.  In my Chapter 13 filing there is a repayment plan. I am repaying home loan payments that I missed and no debts where discharged. Isn't the interest on home loan payments tax deductible?

Expert Alumni
May 31, 2019 11:19:30 PM

You are correct. If you are on a payment plan and still paying your interest, it is deductible as usual. You won't receive 1099-C if the debt will not be discharged.