You get a 1099-C for Cancelled, forgiven, and discharged debt which is considered taxable income, unless it qualifies for an exclusion or an exception. Your Chapter 11 bankruptcy falls under what is considered an exclusion. You will still need to enter your 1099-C in TurboTax even if it qualifies for an exclusion or an exception. You can find more details on this here https://ttlc.intuit.com/questions/1899870
You can't use the Online version to claim the exclusion. You'll need the download or CD version of TurboTax to do this and access Form 982 so that you can notate your bankruptcy. So follow the exact steps here below, provided by TurboTaxMichaelDC, and that will help you get this taken care of.
NOTE: If you started your 2016 return in TurboTax Online and want to switch to the TurboTax download/cd version, click here. And if already paid for TurboTax online, contact our support representative ; otherwise proceed with the desktop purchase.
Exclusions
If the debt qualifies for any of these exclusions, TurboTax will complete Form 982 and include it with your return.
https://ttlc.intuit.com/replies/5709022
[edited 2/7/17 at 8:17am]
You get a 1099-C for Cancelled, forgiven, and discharged debt which is considered taxable income, unless it qualifies for an exclusion or an exception. Your Chapter 11 bankruptcy falls under what is considered an exclusion. You will still need to enter your 1099-C in TurboTax even if it qualifies for an exclusion or an exception. You can find more details on this here https://ttlc.intuit.com/questions/1899870
You can't use the Online version to claim the exclusion. You'll need the download or CD version of TurboTax to do this and access Form 982 so that you can notate your bankruptcy. So follow the exact steps here below, provided by TurboTaxMichaelDC, and that will help you get this taken care of.
NOTE: If you started your 2016 return in TurboTax Online and want to switch to the TurboTax download/cd version, click here. And if already paid for TurboTax online, contact our support representative ; otherwise proceed with the desktop purchase.
Exclusions
If the debt qualifies for any of these exclusions, TurboTax will complete Form 982 and include it with your return.
https://ttlc.intuit.com/replies/5709022
[edited 2/7/17 at 8:17am]
This answer is no good. I answered the questions It does not ask about chapter 11. If you click on learn more it say consult a tax professional.
Is the debt a personal debt or for a business? It's not going to specifically list bankruptcy there for you on those interview screens. Once you click Learn More for personal debt and it opens that window, click the "canceled debts" link inside that window and you will see Bankruptcy listed as one that is not included in your income.
If personal, you will choose the first option on the second page that is entitled "Is This for Personal Debt?" and that matches the "I received a 1099-C for another type of debt," answer you chose on the first page.
@makesgreatice I've figured it out for you. You can't use the Online version to claim the exclusion. You'd need the download or CD version of TurboTax to do this and access Form 982 so that you can notate your bankruptcy. Let me edit my answer with steps you need to take from now.