If you did received a late-arriving 1099-C, unfortunately, you'll have to amend your return to include the extra income. Since it's extra
income, there's a chance that you'll need to send part of your refund back with
the amendment.
There are exceptions regarding mortgage debt,
bankruptcy and insolvency.
The amendment form for 2016 will be out in
February. You have until April 18, 2017 to send the amendment along with the
balance due, if any.
Here's a link
to find the amendment instructions when it's released.
Here’s some more info about the 1099-C:
According to the IRS, nearly any debt you owe
that is canceled, forgiven or discharged becomes taxable income to you. You'll
receive a Form 1099-C, "Cancellation of Debt," from the lender that
forgave the debt. A common example of when you might receive a 1099-C is when a
bank forgives a portion or all of your credit card debt.
Here's how to enter the 1099-C when the
amendment form (1040X) becomes available:
1.
Open (continue)
your return.
2.
In the TurboTax
program, search for 1099-C or 1099C (lower-case
works also) and then click the "Jump to" link in the search results.
3.
Select the type of
cancelled debt (main home or other) and then click Continue.
4.
Follow the onscreen
instructions to enter information from your 1099-C.
