I received the original paperwork that my debt was forgiven in July 2017. However the 1099C says aug 2017. It's a second mortgage. My ex husband also received a form for the same amount bc the mortgages are in both our names. But he received a 1099c under his name alone with the SAME amount. Do we split the amount???how does this get entered?? I file HOH w my kids.
Tip: If your creditor is still trying to collect on your debt, it's not considered cancelled, forgiven, or discharged. There is no taxable income to report, not even if you got a 1099-C from the creditor.
To enter your 1099-C:
Follow the onscreen instructions to enter information from your 1099-C.
OK, I AM EXEMPT FROM INCLUDING THIS AS INCOME. I QUALIFY DUE TO INSOLVENCY. I WAS TOLD I NEED FORM 982. I ENTERED THE 1099C IN THE SYSTEM: ON MY MAIN HOME. TYPE OF TRANSACTION :OTHER TRANSACTION . YES I HAD A SECOND MORTGAGE USED FOR THE HOME.WHEN I GET TO TELL US ABOUT YOUR MAIN HOME" I GET STUCK BECAUSE NONE OF THOSE SEEM TO BE THE REASON YET I DO NOT SEE WHERE TO PROMPT THE 982...WHAT AM I DOING WRONG??
Please see this link: <a rel="nofollow" target="_blank" href="http://intuit.me/2HcLHmG">http://intuit.me/2HcLHmG</a>
Cassandra i read the link and this part has me confused because it contradicts publication 4681:
"To qualify, the debt must be on your primary residence (not a second home, investment, or rental property) and forgiveness must have been granted between January 1, 2007 and December 31, 2017, both dates inclusive." (true in my case)
Pub 4681 pg 9 states "IF your debt was discharged after 2016, you can't exclude it from income as qualified principal residence indebtedness unless discharge is subject to an arrangement entered in writing BEFORE JAN, 1, 2017."
Tip: If your creditor is still trying to collect on your debt, it's not considered cancelled, forgiven, or discharged. There is no taxable income to report, not even if you got a 1099-C from the creditor.
To enter your 1099-C:
Follow the onscreen instructions to enter information from your 1099-C.