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.
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.