I need to file a 982. I had a loan forgiven on a 1099C for a car that was totaled out and the amount is what was left after insurance paid full value to the car loan.

[vjandjs]

I am wondering if this would count for 982 since it is the amount over fair market value after the wreck.

[KeshaH]

The loan forgiveness might not qualify for exclusion on Form 982.

Form 982 is typically used for specific types of debt forgiveness - like bankruptcy, insolvency, or primary residence debt. Your loan forgiveness was due to an "insurance deficiency" and doesn't automatically qualify for the exclusion. To exclude this income, you would need to have been insolvent (total debts greater than total assets) at the time of the forgiveness.

See TurboTax's Guide to Debt Cancellation and Your Taxes.

If you qualify for the exclusion of cancelled debt income due to insolvency, review these steps to enter this exclusion in TurboTax.