Get your taxes done using TurboTax

1. How to report: 

• Enter the 1099-C and go through the questions, it will exempt your income and not be reported. How do I enter a 1099-C?
• Add the 1099-MISC and then subtract it out as a negative other income with a description.

Follow these steps to enter the 1099-MISC:

1. Log in to your return.
2. Go to income
3. Scroll down to Other Common Income
4. Select Income from 1099-MISC
5. Edit/ Start/ Revisit
6. Enter income -the income should be in box 3,
7. Enter tax if any withheld in box 4
8. Continue
9. Describe the reason -
10. continue
11. None of these apply
12. Continue
13. Did this involve main job?
14. No -this is for the worksheet to get the right answer despite it being your job
15. Continue
16. How often do you get?
17. Got in 2024 - even if you receive this each year so the program won't think this is another job
18. Continue
19. Intent to earn money?
20. No again, obviously you work for money but this needs to be no for the worksheets
21. Continue
22. Do you have another?
23. No
24. Continue

Follow these steps to subtract the income:

1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description  - whatever you want to say, something like -nontaxable student debt
9. Amount, enter your amount with a negative in front
10. Continue

2. 1099- and 1099-MISC forms

Topic 431  states: After a debt is canceled, the creditor may send you a Form 1099-C, Cancellation of Debt showing the amount canceled and date of cancellation.

About Form 1099-MISC, Miscellaneous Income  states: File Form 1099-MISC for each person to whom you have paid during the year:

• At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
• At least $600 in:
  • Rents.
  • Prizes and awards.
  • Other income payments.
  • and more items are listed