After you file

Yes. Here is a Guide to Debt Cancellation and Your Taxes

What version of TurboTax are you using? If you're using an online or mobile version of TurboTax, you'll need to switch to the Desktop software so you can follow these instructions.

1. With your return open in the TurboTax Desktop software, click the Forms icon at the top or by selecting it from the View menu. This will put you into Forms mode.
2. Select Open Form (in the left pane on Windows, in the top menu on Mac) and type in 1099-C.
3. Select Form 1099-C: Cancelation of Debt and Open Form.
4. Enter the name of the creditor and then select Add Form.
5. Type in the info from your paper 1099-C.
6. Now go back to the left pane and open Canceled Debt (X) (X is your 1099-C creditor).
7. Scroll down until you reach the part that pertains to your situation (Parts III through XI). There are nine parts but you only need to fill out the one that applies to you.
   • If you're filling out Part VIII (Exclusion for Insolvency) you must also select the QuickZoom button so you can fill out the Statement of Insolvency.
8. Next, select Form 982 in the left pane (skip steps 8 and 9 if your debt was canceled due to insolvency or bankruptcy).
9. Complete Part II (Reduction of Tax Attributes) on Form 982.
10. Now select Schedule 1 in the left pane to verify that your debt has been excluded. There should be no canceled debt income on Line 8.
11. Finally, select the Step-by-Step button at the top to go back to interview mode.