topic How do I amend my return to add the 1099 c form? in After you file

How do I amend my return to add the 1099 c form?

redmoonic90 — Tue, 04 Jun 2019 20:07:15 GMT

I already have my return accepted,but I have to amend it to add the 1099 c form,but I do not see the option in the menu to add it. All I see is 1099 MISC which is a different form. So how can I add the information to amend my return?

I would prepare the amendment but then only send it in if...

MelaineC — Tue, 04 Jun 2019 20:07:16 GMT

I would prepare the amendment but then only send it in if you owe any money or are due any additional refund. There is no cost because you have to mail it in (if you submit it). If you are due an additional refund, you do not have to submit it unless you want to. For more information as to when to amend and how to do so, please view TurboTax FAQ Do I need To Amend My Return. At the end of the answer, there are also links, in blue, on how to do so in TurboTax.

It would be best to wait until you have received your refund from the tax return already submitted (if you are expecting one). This will prevent delays in receiving your refund and you generally have 3 years to amend, from the day your taxes are due or 2 if you paid taxes due to owing taxes. There usually are no penalties if you will receive a refund.

Here is how to enter your 1099-C

Click on Federal Taxes (Personal, in Home & Business product)
Click on Wages & Income (Personal Income, in Home & Business product)
Click on I’ll choose what I work on
Scroll down the Screen to Less Common Income
Under the above area is Miscellaneous Income, 1099-A, 1099-C Click on Start or Update

WAIT until you receive your refund and then follow the instructions below to Amend.

https://ttlc.intuit.com/replies/3288565

Re: How do I amend my return to add the 1099 c form?

ChondelLO — Sun, 02 Feb 2020 16:13:48 GMT

For instructions on how to amend your return please click the link below.

How do I amend my 2019 TurboTax Online return? - Community

Re: How do I amend my return to add the 1099 c form?

Aileen34 — Sun, 07 Mar 2021 17:54:53 GMT

How do I amend my taxes for a 1099c ? I have already received my refund

Re: How do I amend my return to add the 1099 c form?

EbonyL122824 — Sun, 07 Mar 2021 19:17:16 GMT

@Aileen34 The 1040X Amendment form will be available for filing on 3/18/2021. At that time, you can then follow the instructions in this FAQ here to amend your 2020 tax return.

Re: How do I amend my return to add the 1099 c form?

Aileen34 — Sat, 10 Apr 2021 16:22:29 GMT

Will I have to pay taxes on my amend 1099c I'm on as and food stamps and in low-income housing and this could really hurt me

Re: How do I amend my return to add the 1099 c form?

ToddL99 — Sat, 10 Apr 2021 16:38:01 GMT

If you can demonstrate that you were insolvent at the time the debt was cancelled, you may not have to pay any tax on Cancellation of Debt income.

From @MichaelDC

A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as income under the "insolvency" exclusion. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent

However, the debt cancellation must be reported and you must claim that you're insolvent on your return. The cancelled debt will then become excluded from income.

If you are reporting any type of debt cancellation other than qualified principal residence exclusion that TurboTax handles, we generally recommend using the CD/Download version of TurboTax Deluxe or a higher edition. With either of these versions, you'll be able to easily make a notation regarding your solvency.

If you started your 2020 return in TurboTax Online and want to switch to the TurboTax download/cd version, click here.

Note: if already paid for TurboTax online, contact our support representative; otherwise proceed with the desktop purchase.

Once you have the Download/CD version, there are four steps to claim your exclusion.

Enter Form 1099-C
Create the Insolvency Worksheet
Check entries on Canceled Debt Worksheet
Check Form 982

1. Enter Form 1099-C

1. Open (continue) your return.

2. In the TurboTax program, search for 1099-C or 1099C (lower-case works also) and then click the "Jump to" link in the search results.

3. Select the type of cancelled debt (main home or other) and then click Continue.

4. Follow the onscreen instructions to enter information from your 1099-C.

It will say that "Your Debt is Taxable", however, the following workaround will exclude it from income.

2. Create the Insolvency Worksheet

Click Forms in the upper right corner of your screen

Click "Open Form” (button on the top Left).

In the “Type a Form Name” box at the top, type “insolvency”.

Select the form that pops up and click Open Form.

Fill out the form which will give you the Amount of insolvency at the end on Line 7.

3. Check entries on the Canceled Debt Worksheet

In "Form Mode", scroll in the left column to Canceled Debt (Copy 1) and Click. It will open the form.

Scroll to Part VIII - Exclusion for Insolvency

On Line 53 "Were you insolvent? Make sure it's checked Yes

On Line 54 "Amount of Insolvency" carried from Line 7 of Insolvency Worksheet.

On Line 57 "Amount Excluded"

If your total liabilities exceeded the total FMV of your assets at the time of the cancellation, you may exclude the canceled debt to that extent. Complete the "Statement of Insolvency" to compute and document the amount of insolvency.

4. Check Form 982

In "Form Mode", scroll in the left column to Form 982 and Click. It will open the form.

Make sure that Box 1b is checked to exclude your income to the extent insolvent.

Once Form 982 is complete you will want to review Form 1040 "other Income" line. This is the amount of your cancelled debt that's taxable. If you were insolvent, it should be zero or at least less than the total cancelled debt from the 1099-C