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Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

 
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7 Replies
rjs
Level 15
Level 15

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

The screen where you enter Form 1099-C in TurboTax says the following.

 

"In some situations, canceled debt can be excluded from taxable income. These situations might include bankruptcy, insolvency or natural disasters in the Midwest. If you think one of these exclusions applies to you, we recommend you have a tax pro review your situation."

 

If you are using the CD or download TurboTax software, you can complete Form 982 for insolvency in forms mode, but there is essentially no help or guidance. You have to know what you're doing. That's why consulting a tax professional is recommended.

 

In TurboTax Online there is no way to complete Form 982 for insolvency.

billfech
New Member

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

Does Turbo Tax have a "Tax Pro" or will I need to go to someone local?
rjs
Level 15
Level 15

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

@billfech - You have to go to a local tax professional to handle insolvency.

If you have further questions, add a comment to your own question that you posted today. This thread is almost 2 years old.
cjd54
New Member

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

Thank You !

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

If this an old thread, assuming it has not been updated, TurboTax needs to separate the TurboTax "On line" version "Questions and Answers" from the paid TurboTax Deluxe because mixing the 2 just creates more confusion. I'm surprised that Intuit which is always is so hands on with detail, would fumble the ball here, in my opinion. I've wasted hours trying to make it correct for my case. All they had to do when entering the 1099-C is ask the question, do any of the following apply? which would link  the Form 982. Giving them the benefit of the doubt. Maybe when I do enter the data in the 98,2 the 1099-C Cancelled debt will magically change, maybe not?

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

My thoughts exactly!!!!!

JamesG1
Expert Alumni

Does turbo tax support filing form 982 for insolvency? I will be receiving a 1099 c this year and I want to claim insolvency.

IRS form 982 is supported in TurboTax versions Deluxe and above.

 

Enter '982' in the magnifying glass in the upper right hand corner of the screen.  Click on 'jump to 982'.

 

Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) reports the amount of cancelled debt to be excluded from taxable income. TurboTax will automatically generate Form 982 if your cancelled debt is due to:

  • Cancellation of qualified principal residence indebtedness, aka mortgage debt relief;
  • Debt cancelled in a Title 11 bankruptcy;
  • Debt cancelled during insolvency (the amount exceeding your assets);
  • Cancellation of qualified farm or real property indebtedness.

In addition, you should have a 1099-C to report the amount of cancelled debt.

 

See also this help.

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