Filing an Amended Tax Return for 2018

[Bella2021]

I received a 1099-C for 2018 extremely late. I am filing an amended tax return and I have completed all the necessary forms to show that I was insolvent. When I went to print my documents for Federal and Colorado, the "Amended Return" checklist tells me if I added or changed a tax form, I will need to attach a copy to each return. I only decided to file an amended tax return including the 1099-C. I was a student at the time, so it printed my 1040X, 1040, my 8863, form 982 and my statement of insolvency. Do I need to include a copy of the 1099-C? I only have one. Is there anything else I need to include?

The state tax return does not look like it even changed, there is no mention of the 1099-C, do I need to send this in to the state? Nothing else besides the 1099-C has changed.

[LinaJ2020]

Yes, you do need to include a copy of the Form 1099-C in your amendment to the IRS.  I will suggest you to make a copy to send to the IRS and keep the original one for your own record. 

If your state tax return does not show any changes, you do not need to amend or submit amended state tax return. 

In most situations, if you receive a Form 1099-C from a lender after negotiating a debt cancellation with them, you'll have to report to the Internal Revenue Service as taxable income. Certain exceptions do apply.  According to the Mortgage Forgiveness Debt Relief Act in 2007, from 2007 to 2020, you can exclude up to $2 million in forgiven mortgage debt if you were married and filing jointly—up to $1 million for other filing statuses. Due to Covid, the CAA extends the exclusion of cancelled qualified mortgage debt from income for tax years 2021 through 2025.  For more information, click here: Cancellation of debt