In general, amounts reported on Form 1099-C are taxable and need to be reported on your tax return. Information about exclusions to this rule can be found here: https://ttlc.intuit.com/replies/3300645
If your return has already been accepted by the IRS, you will want to amend your original return and add this form.
You can use this link for instructions on how to amend the return:https://ttlc.intuit.com/replies/3288565
- When you start the amend process, the refund that is shown in TurboTax is reset to zero.
- You will still get the original refund. The amended return will show the difference you owe, or that you will get back as a refund.
- After you have updated your tax return, you will then mail Form 1040X to the IRS, amended returns cannot be efiled.
To report this information on your tax return, please see the instructions below:
- If you do not see " Miscellaneous Income, 1099-A, 1099-C" in the list, select the "Check for more income" button, then select "Skip to see all income" to expand the list.
- In the “Less Common Income” section, click “Show More” to view the list of income selections.
- Click “Start” next to “Miscellaneous Income, 1099-A, 1099-C”.
- Select “Start” next to “Cancellation of debt (Form 1099-C) or the abandonment and/or acquisition of secured property (Form 1099-A)”.
- On the next screen, select “I received a 1099-C for another type of debt, including a credit card, a car loan, a loan modification, or a mortgage on a second home” and follow the interview questions.
