Do I have to report a bankruptcy discharged debt? I received a 1099-C cancellation of debt form from a creditor.

Linda10 · ‎June 4, 2019

When I enter it in turbo tax, it posts as income but according to Bankruptcy form 982, it isn't included as income. It was court discharged.

IsabellaG · ‎June 4, 2019

Yes, you need to report the 1099-C, but if your debt was discharged to to bankruptcy, you can qualify for an exclusion.

You would need to complete your return using a TurboTax CD/Download Product (Deluxe or higher) that handles form 982. You would complete Form 982 manually by working in Forms Mode in the desktop version.

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Do I have to report a bankruptcy discharged debt? I received a 1099-C cancellation of debt form from a creditor.