Hi,
My client has 1099-C Cancellation of Debt from Discover Bank.
I entered the full amount of canceled debt from Box 2 ($5,173.74) as Cancellation of Debt (COD) income under Income > Other Income in Pro Connect
I entered $501.34 as interest income from Form 1099-C. This will add the amount to taxable interest income.
Since the $501.34 from Box 3 is already included in the canceled debt amount in Box 2, I need to adjust ordinary income to subtract the interest to avoid double taxation $ 501.34 as ordinary and interest income.
I can't find the specific field to adjust it, so I used Other 24Z and got a message:
NOTE: No input should be entered below. The IRS instructions state Schedule 1 line 24z should be blank. Remove any existing input below.
Am I missing something, or my understanding wrong. I'm a first year with proconnect and need a help. Thank you.
