To exclude cancelled debt from income due to insolvency, you will need to file an amended return for the year the tax was assessed.
The amended return should include Form 982.
To file a Form 982 you will need the CD/Download version of TurboTax Deluxe or a higher edition.
According to IRS Publication 4681 You do not have to include a canceled debt in income to the extent that you were insolvent immediately before the cancellation. The publication includes an insolvency worksheet. If your debts exceed your assets, you are insolvent.
You can get prior year tax software from TurboTax at this TurboTax website: Prior Year Taxes.
Once you have CD/Download software you can switch to the Forms mode to complete Form 1099-C (Cancellation of Debt), Form 982, and the Canceled Debt Worksheet.
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