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New Member
posted Feb 27, 2023 11:08:58 AM

I need to dispute a 1099-c which is invalid and the issuer will not correct. How can I do this and still use Turbo Tax?

We received a letter from a debt collector related with this bank back in 2014 and disputed it as they could not prove the debt belonged to the person named. No response came and now we have a 1099c from the same bank for a different amount for 2022. They obviously have a debt linked with someone with the same common name. Need to know how to dispute this 1099c and still be able to use Turbo Tax as I always have.

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1 Replies
Expert Alumni
Feb 27, 2023 11:34:03 AM

If you have evidence that the alleged canceled debt was incorrectly attributed to you, you could report the 1099-C in TurboTax under Miscellaneous Income, 1099-A, 1099-C since the amount would have been reported to the IRS. Then, go to Other Reportable Income,  click to Add an income item, and make a separate entry for the same amount as a negative number, and in the Description box state something like "Cancelled debt was not my debt". This would cancel out the income.

 

See this IRS article for more information regarding the taxability of cancellation of debt.