For the exemption, you must file a Form 982 with the 1099-C.
This is tax exempt for a Chapter 7 bankruptcy if you can convince the IRS that you were insolvent at the time of the bankruptcy.
The following article discusses this information:
I've attached IRS Form 982:
https://www.irs.gov/pub/irs-pdf/f982.pdf
[Edited: 02.19.20.18 4:08 PM EST]
I read this already but I can’t get directed to 982. How do I get to that form?
I think he needs to know how to call it up in Turbotax to include it in his filing.
If you put 982 in the search box, I think Turbotax will take you to the right place.
I tried to do this to be sure it would, however, it only brings him back to interview questions without providing a way to create the form. However, thank you for the information.
I tried it just now (Windows, desktop, deluxe). The interview question didn't lead me to the form. But the form is created and available to fill out in Forms mode. And it has exemption codes and an insolvency worksheet.
I am using the free deluxe TurboTax offered through a link from my job. I’ve accessed it through the desk top and through this tablet. Would that be a reason 982 won’t get pulled up?