TurboTax interview doesn't support two different types of canceled debt reported on 1099-C. Please consult a professional, or see IRS publications 544 and 4681 before continuing.
You can get IRS forms and publications by calling 1-800-TAX-FORM (1-800-829-3676) or by visiting the IRS website at www.irs.gov.
However, you can add the additional 1009-C using the Forms mode in TurboTax (NOTE: DO NOT OVERRIDE ANYTHING WHILE IN THE FORMS MODE).
To do this, enter the first 1099-c. "Federal Taxes" > "Wages & Income" > "Less Common Income" > Miscellaneous Income" > click start next to "Cancellation of debt (Form 1099-C)..." follow the onscreen guide to enter your first 1099-C form.
- Once you have entered the first one, click on "Forms" in the upper right corner (this will switch you to the forms mode).
- Locate the Form 1099-C in the left pane, it will open in the middle of the screen.
- Scroll down on the open form to where you see "Quickzoom to another Form 1099-C", click on "quickzoom" to the right of it. This will open up a pop up box
- In the pop up box type the name of the Creditor and click on "Add Form", this will open up a brand new 1099-C form, copy the information directly into the form matching it exactly to the 1099-c you have in hand.
- continue repeating these steps until all the 1099-c forms have been entered. (see images below)
- Once done, click on "Step-by-Step" Located in the upper right hand corner to return back to the interview mode.
