For this specific situation, you do not enter any of this into TurboTax. You do not need to amend your return. You will owe no tax. The information I provided came from this website: <a rel="nofollow" target="_blank" href="
https://www.irs.gov/uac/home-foreclosure-and-debt-cancellation">https://www.irs.gov/uac/home-foreclo... the math ahead of time, have the foreclosure amounts in hand to provide the math, be in front of a fax machine if you need to send it in. You will be proving that the amount on that form is excludable, because it did not result in a 250,000 or more gain. I helped a client with this and didn't even need to send paperwork in. They resolved it immediately. The reason why they sent you the notice is because the amount is on a 1099-MISC which normally is reportable. But not this time. As soon as you mention that it was from foreclosure of your primary home, it shouldn't take long to get the situation resolved. But have proof in hand just in case.
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