If you have already
e-filed your return and it's still pending, then you will need to wait until
its either "accepted" or "rejected".
If the
return is rejected (returns were
not received by the IRS), then you can simply go back into the return and
correct the income from self-employment to retirement. Therefore, you will be
able resubmit & e-file your return again, like if you were doing it for the
first time.
However, if accepted (the returns were received
by
the IRS), then you will need to Amend
your return.
During the amendment process, you may need to include this
as income (Cancellation of Debt, Form 1099-C), because it is generally considered
taxable, unless you meet one of the circumstances for your income to be
excluded:
- Cancellation of qualified
principal residence indebtedness, aka mortgage debt relief;
- Debt cancelled in a Title 11
bankruptcy;
- Debt cancelled during
insolvency (the amount exceeding your assets);
- Cancellation of qualified
farm or real property indebtedness.
If you do meet one
of the circumstances, then you will need to file a Form 982, along with your
Amended tax return. Please see this link for more information:https://ttlc.intuit.com/replies/5710421
If you don't meet
any one of the circumstances, then you will need to include this cancellation of debt as taxable income.
