I was also struggling with this form. But Here's the guidance from the IRS 2021 publication 4681 for when you were insolvent by the amount higher than the canceled debt:
When completing his tax return, Greg checks the box on line 1b of Form 982 and enters $5,000 on line 2. Greg completes Part II to reduce his tax attributes as explained under Reduction of Tax Attributes, later. Greg doesn't include any of the $5,000 canceled debt on Schedule 1 (Form 1040), line 8c. None of the canceled debt is included in his income.
So my understanding is, you don't even need to include any of the info from your 1099-c as long as you fill out form 982 properly. This way, your income and refund meter will reflect things correctly. Hope it helps.
