How to enter 1099-C forms for BOTH personal and business debt cancellation

[anmcmahon]

My husband received debt cancellation from credit cards for both a business (through his EIN) and personal (through his SSN) in 2024. In TurboTax online, I had to choose only ONE type of this debt to report - either business or personal - and I cannot figure out how to report the other, as well. I know that if I had more than one form for one type, I could combine them and report together, but these are two different types of debt. Any assistance appreciated!

[LeticiaF1]

You will need to enter each Form 1099-C separately on you return. To enter them on your return:

1. Open your return
2. Go to 1099-C.
   • In TurboTax Desktop, search for 1099-C or 1099C (lowercase also works) and select the Jump to link at the top of the search results.
3. There'll be ‌questions to help you classify what type of cancellation of debt it is.  The program will ask if the cancellation of debt is personal or business.  
4. Follow the questions

See the images below for your reference:

[anmcmahon]

Hi @LeticiaF1 , thanks for responding. The issue is that on the second screen shot that you included, he has one 1099-C for a personal debt, and one 1099-C for a non-personal debt. Because you have to choose just one type, as it's a toggle and not checkboxes, I can only enter one of these forms and type of debt. I cannot figure out how to add personal debt AND non-personal debt. Any ideas?

[JamesG1]

The IRS form 1099-C reporting non-personal debt, such as for a business or a rental property or a farm would be reported as income to the business, rental property or farm.

IRS Publication 525, page 20, states:

If the debt is a nonbusiness debt, report the canceled amount on Schedule 1 (Form 1040), line 8c. If it's a business debt, report the amount on Schedule C (Form 1040) or on Schedule F (Form 1040) if the debt is farm debt and you're a farmer.

What is the nature of this non-personal debt?  And what is the nature of the business entity that would be reporting the income?

In TurboTax Premium Online, you are able to enter the IRS form 1099-C reporting personal debt as follows:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click the down arrow to the right of Less Common Income.
• Click to the right of Miscellaneous Income, 1099-A, 1099-C.
• Click to the right of Cancellation of debt (form 1099-C).

The entry will be reported:

• on line 8c of Schedule 1 of the Federal 1040 tax return, and 
• on line 8 of the Federal 1040 tax return.

@anmcmahon