3 credit cards cancelled under Debt negotiation. received 1099C / Uber driver/

[RolaSakuraba]

Hello I am new to the forum. I had really bad debt and had to go into debt negotiation because I have basically no assets except my car which I owe almost the entire amount on. The first one came in and Im seeing the online doesnt work. So I tried adding the 1099C to see how much a hit I would take since its only $2500 and it's saying the forms are being updated, including the 982 which was apparently only used with the CD and is for insolvency. Does this mean it will start working online? I can't afford to hire a tax professional in person because I'm not due much back and I can't afford to pay in. If I could afford that I wouldn't have done debt negotiation to begin with! There are 2 more that are supposed to be coming that are a larger amount but according to the fact that I own no assets I would definitely be considered insolvent. What should I do? I was hoping to use the Uber driver discount on self employed and get the CPA assistance online.

[KurtL1]

Form 982 for the 2019 tax year was one of the forms affected by the Consolidated Appropriations Act of 2020 that was signed into law December 20, 2019. Our programmers are working to have it ready to use as soon as possible. Per IRS forms availability table for TurboTax individual (personal) tax products it is scheduled to be ready around the first of the month. 

When completing the Insolvency Worksheet  should be calculated on the date of cancellation on each of the 1099-Cs.  If you receive three 1099-Cs with different dates you will need to complete three separate insolvency worksheets. 

[RolaSakuraba]

So to clarify does this mean it will be available with my online self employed turbo tax? I owe way more in debt than what was forgiven ($10,000 total) , how would I prove on 982 the amount of insolvency? the amount has shifted very little between those dates can I just round it would be very hard for me to tell a difference of $100 or so in comparison to the $24,000 I still owe between those dates. 

[RobertG]

To file a Form 982 you will need the CD/Download version of TurboTax Deluxe or a higher edition.  

According to IRS Publication 4681 You do not have to include a canceled debt in income to the extent that you were insolvent immediately before the cancellation. The publication includes an insolvency worksheet.  If your debts exceed your assets, you are insolvent.

If you started your 2019 return in TurboTax Online and want to switch to the TurboTax CD/Download software, here's how. How do I switch from TurboTax Online to the TurboTax software?

Once you have switched to the CD/Download software you can switch to the Forms mode to complete Form 1099-C (Cancellation of Debt), Form 982, and the Canceled Debt Worksheet. 

[RolaSakuraba]

but I see on the chart that it's going to be allowed online. I don't want to use the download one I stated I drive for Uber and I want to use the online UBER self employed discount so I get get the live CPA help. I'm clueless over this stuff I don't want to end up having to pay H&R block $500 I don't have because I cant ask the online CPA for help. I had $50,000 in debt and no assets before I even started debt negotiation so I was definitely insolvent before anything was forgiven but Ibd don't understsland what you mean about the above where you say I don't have to include my 1099C but everywhere I'm seeing I do. Hence why I want to use the CPA live help version. 

[KathrynG3 · Accepted solution]

Well, you can enter the 1099-C in your Online program and get live support. However, if you wanted to easily see the worksheets, or if you have different types of 1099-C cancelation of debt, then using the Online program may not be possible.

Form 982 is scheduled to be available 1/29/2020 both Online and Windows download.

Once you have started in your Online TurboTax program, you can call in for support. From that discussion, you will know if the 1099-C forms are all the same type of debt, and if the Online option could possibly still work for you.

[RolaSakuraba]

all three of these are credit card 1099-c I imagine those are all the same? 

it would be wonderful if I can keep it online so I can call and have everything checked. I know I'm going to mess up if I have to do it manually. 

[JohnB5677]

When you enter Form 1099-C in TurboTax the following message is displayed. "In some situations, canceled debt can be excluded from taxable income. These situations might include natural disasters, bankruptcy or insolvency.

You cannot complete FORM 982 (Insolvency) on TurboTax Online. 

You will need the CD/Download version of DELUXE or higher.

[RolaSakuraba]

This is getting extremely frustrating. I have two people saying 982 is being added on 1/29/20 which it says in the top link and two saying it won't. This is a difference of $500 for me WHICH I DON'T HAVE. There's no consistency on what Im being told here!! 

[DaveF1006]

If you are using Turbo Tax Online version, Form 982 is not available.. You will need to purchase a CD or download version of software that can be added to your computer. in your situation, this would be your recommended course of action. Please click here to purchase your download.

if you have already paid for your Turbo Tax online program, call customer support so they can provide this download for free after they verify you paid for your online version.

Please review this turbo tax link as it explains how to prepare your 982 in your Turbo Tax software download. 

[RolaSakuraba]

This doesn't help because I want to use my FREE Uber upgrade and use the CPA live help. I see the 1099-C is online but the 982 link just links to that particular part it's not giving me the option to prove I have a massive amount of debt. I'm too stupid to fill out all the forms manually if I have to start entirely over and I want a CPA to look everything over because I'm already super poor I can't afford to be audited. Plus I always get the audit defense and rely on my forms being checked before I submit, is that even an option on a manual cd?

Are the versions of the CD even still valid now? I get a discount from my job for software but with the changes I don't think it's been updated.

[ThomasM125]

You will need to use the download version of TurboTax to complete form 982 to exclude your cancelled debt from taxation. The online version of TurboTax will let you enter the form 1099-C but it will all end up being taxable.

There is a "Cancelled Debt Worksheet" on form 982 in TurboTax that will allow you to complete the form by going through a question and answer routine. To find the form in TurboTax, you have to go to the "Forms" option, then use the "Open Forms" option to find form 982.

You will see a "Quickzoom" option on the top of form 982 that will take you to the canceled debt worksheet.