Hello! I hope that your day is going well.
I have a Massachusetts State tax filing question that I was unable to get a straight answer from speaking to the Massachusetts Department of Revenue.
2019 Form 1099C (debt cancellation) in the amount of $26,031.40 discharged no withholding in a bankruptcy court proceeding (Chapter 7).
This was an unsecured loan for a Timeshare purchase. It is NOT counted as income for Federal Tax filing in TurboTax but it is count as income for Massachusetts State Tax filing.
My question, is the $26,031.40 exempt from being counted as income in the state of Massachusetts and if so, how do I exclude it from being counted as income in TurboTax form the Massachusetts State Tax filing?
Thank you so much and have a great day!
