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Get your taxes done using TurboTax
To verify what @ColeenD3 said:
"A debt discharged in bankruptcy has no income tax consequences to an individual debtor, as it is excluded from a debtor’s gross income pursuant to Internal Revenue Code §108(a)(1)(A). Notwithstanding this, it is not uncommon for a debtor to receive an IRS Form 1099-C, Cancellation of Debt in connection with a debt discharged in bankruptcy.
If this occurs, simply file with your next tax return an IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, advising the IRS that the debt in question was discharged in bankruptcy. This form can be obtained at www.irs.gov, or from your tax preparer."
From Mid Hudson Bankruptcy Lawyers
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March 19, 2022
1:20 PM
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