I'm using the download version of 2017 home and business and completed my taxes. When I run the analysis, it says my audit risk is medium because my return includes form 982, which indicated I have non-taxable income from cancellation of debt.
I didn't claim non-taxable income from cancellation of debt, and can not find the form 982 in my filing.
The only thing I can think of is, I do have non-taxable disability income from CalPERS 1099-R, (law enforcement), but have triple checked everything along with comparing my entries from Turbotax 2016, and 2018.
Note; I also am working on and finished my taxes using Turbotax 2016 and 2018. I opened all the years, 2016, 2017, and 2018 on three separate computer screens. I went through each section one at a time comparing my info to see if I made an entry error for 2017. 2016 and 2018 have no issue regarding form 982, only 2017.
I read online there was a glitch in TurboTax 2017 regarding form 982.
OK, I found and opened form 982 in my 2017 tax return. It is blank, no entries, because I don't have any canceled debt. But, it still shows my audit chances are medium because of canceled debt.
I deleted the blank 982 form from my return, but it still shows my audit chances are medium because of canceled debt. I have no canceled debt.