Need info on IRS Form 1099-C and IRS form 982
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Need info on IRS Form 1099-C and IRS form 982

I have turbo tax home & business edition. I can't find any section that covers IRS form 1099-C and IRS form 982. I have three 1099-C forms, one for $3,654.35, another for $$3,040.72 and the last for $2,792.56. I also have IRS form 982. I got my debt cancelled because I wasn't able to make the monthly credit card payments.

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Intuit Alumni

Need info on IRS Form 1099-C and IRS form 982

To enter your Forms 1099-C, type 1099-c cancellation debt in the search bar and then "Jump to". Enter each 1099 seaprately. 

Form 982 is to declare insolvency.

You have to determine up to what point you were insolvent.  The worksheet can be found on page six of the following document:  https://www.irs.gov/pub/irs-pdf/p4681.pdf (It is a PDF file).  This worksheet is manual, and usually requires some investigation.  Look at the discharge date on the 1099C and the amount of debt that was cancelled.  The worksheet is based on the amount of attributes and debts you had on that date.  You will need to see what your bank account, credit card debts, car debt, house debt, etc. were on that date (unpaid medical expenses, etc.)  If your llabilities are greater than your assets, (do not include the debt amount canceled), you are insolvent.  That is the number you will put in the 982 form under insolvency and goes with your return.  If your insolvency is greater than your canceled debt, you have no canceled debt will not be taxable.  I recommend mailing in the return to include both form 982 and the worksheet.

If your canceled debt is more that your insolvency, that is claimed as other income (line 21).  In TurboTax you will see this as Miscellaneous Income.

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