Retired (disability), but received a SMALL W2 for 2018 employment, SS benefits & 1099-C cancellation of debt. Significant medical expenses. Best edition to use?

[joedesfl]

Does the cancellation of debt count as income? If so, that puts me way over the $34K/yr. Without it, I'm way under $34K a year.

[CarolynM]

Yes, cancellation of debt is income. You will need to use TurboTax Deluxe to file your taxes

[joedesfl]

Thank you again. I had also assumed that co-payments & deductibles count as medical expenses. Is that an accurate assumption?

[CarolynM · Accepted solution]

I suggest TurboTax Free File Edition. While the name is similar to Free Edition, there are no upgrade fees. This will allow to you itemize your medical deductions for no cost.

To you qualify

Make less than $34,000 a year or

Qualify for the Earned Income Credit or

Active military making less than $66,000

For more information, follow these links: Free File Program  and IRS Free File Alliance.

To get started, click here:  www.taxfreedom.com. 

[joedesfl]

Thank you Carolyn. Does the cancellation of debt count as income? If so, that puts me way over the $34K/yr. Without it, I'm way under $34K a year.