The screen where you enter Form 1099-C in TurboTax says the following.
"Important info about your canceled debt...
In some situations, canceled debt can be excluded from taxable income. These situations might include bankruptcy or insolvency. If you think one of these exclusions apply to you, we recommend you have a tax pro review your situation."
If you are using the desktop TurboTax software, you can complete Form 982 and the Statement of Insolvency in forms mode, but there is essentially no help or guidance. You have to know what you're doing. That's why consulting a tax professional is recommended.
In TurboTax Online there is no way to complete Form 982 for insolvency.
In certain cases, you can exclude your 1099-C from your taxable income. Although the IRS generally considers canceled, forgiven, or discharged debt as taxable income, there are exclusions and exceptions to the rule.
When you enter your 1099-C in TurboTax, we'll ask a series of questions to determine if some or all of your 1099-C debt can be excluded.
Can I exclude my 1099-C from my taxable income?
When in Turbo Tax Desktop version, you will go to the FORMS mode and there will be FORM 1099 C. Under that will be Cancel Debt. Go to part VIII and you will be able to pick number 53 Were you you insolvent YES
54 amount of insolvency: probably same as total of 1099 C. 56. check elect to exclude.
These are the steps but your situation could be different so please consult a tax expert.