turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Form 982 and Insolvency Explanation

So for 2021 I had forgiven credit card debt and have completed Form 982 for insolvency.  As I'm finishing everything up when I completed the federal review and "audit risk meter", the program highlighted the form and it says, "...it is important to provide sufficient information concerning the debt cancellation with your return.  In the case of insolvency, documentation showing the insolvency calculation must be attached to the return."

 

How do I attach the documentation?  I found some general guidance online about submitting the worksheet and a brief narrative explanation of the situation, but I can't figure out how to create that in TurboTax.  

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
DMarkM1
Employee Tax Expert

Form 982 and Insolvency Explanation

You are correct. In TurboTax desktop versions you can create/complete the forms/worksheets/summaries, but the statement is outside of TurboTax.   You will need to print/mail in the return along with statement describing the situation and explaining the calculations used to exclude the income.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Form 982 and Insolvency Explanation

Thanks..  So if I already efiled my return and attached the worksheets, if I have to submit a letter describing it, does that mean I should file some sort of amended return and include the letter with the 982 form to ensure everything gets matched up correctly?

 

JohnW152
Employee Tax Expert

Form 982 and Insolvency Explanation

That’s correct.  

See the third paragraph under When To File in the Instructions for Form 982 (Rev. December 2021) for more information. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies