I filed chapter 13 bankruptcy and included the $5147.51 from Bank of America, so do I still need to add the 1099C?

[laurabrandt2001]

I filed chapter 13 bankruptcy and included the $5147.51 from Bank of America, so do I still need to add the 1099C?

[Vanessa A]

No.  If your debt was discharged in bankruptcy it is not considered taxable income so you do not need to add it to your return.

 When to Use Tax Form 1099-C for Cancellation of Debt

[laurabrandt2001]

My bankruptcy chapter 13 is not discharged yet, I just filed on 10/01/26 so do I still need to list this 1099C on my income tax?

[ThomasM125]

You do need to report the Form 1099-C on your tax return but you can exempt the income from taxation if you are insolvent or bankrupt to the extent of what you owe. You can do that in the desktop version of TurboTax by completing Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness. You should complete that form in the year you receive the Form 1099-C. Use the Forms menu option and query Form 982 in the Open Form box to bring up the form. Use the second worksheet on the top called Cancellation of Debt Worksheet to report the debt and then the Cancelled Debt Worksheet on the next screen to choose the reason for the exclusion and the amount being excluded. You can learn more in this Intuit Article.

You can download your online TurboTax program to your computer so you don't have to re-enter all of your information. You will see an option for that on your left menu bar while working on your program in TurboTax. Look for the Tax Tools menu option, then Tools, then see the option on the right to  Save your (year) return to your computer.

Here is a link to where you can obtain the TurboTax desktop product.