Under these
circumstances and in order to file the Form 982, we generally recommend using
the CD/Download version of TurboTax Deluxe or a higher edition. I notice that
you are currently using our TurboTax online product.
Form
982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) reports
the amount of cancelled debt to excluded from taxable income. We'll
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.
In order to the
switch from online to CD/download. please see the following link: https://ttlc.intuit.com/questions/1901476-how-do-i-switch-from-turbotax-online-to-the-turbotax-softw...
Once you have done
the above you can access the forms mode of your desktop program using these
steps:
To switch to Forms Mode, open your return, and then click
the Forms icon in the upper
right corner of your screen (or choose Forms from the View menu at top).
The Federal
Information Worksheet will display and all the forms in your return will
be listed on the left side. Then click on Open
Form and type in the search box: Form
982.
To make sure its
excluded within your return, you will need to fill out the following forms:
- Form 1099-C (Cancellation of
Debt), fill out accordingly
- Form 982, you will need to
indicate the reason for the discharge within Part 1 General information
and you will need to include an amount within Part II Reduction of Tax
Attributes (accordingly to the reason)
- Canceled Debt Worksheet (fill
out the Part accordingly to your reason or exclusion)
- Part III Gain or Loss from
Foreclosure, Repossession, Abandonment, Short Sale
- Part VI Exclusion for
Bankruptcy
- Part VII Exclusion for
Qualified Principal Residence Debt
- Part VIII Exclusion for
Insolvency (must fill out the Statement of Insolvency)
- Part XI Exclusion for
Qualified Farm Debt
- Part X Exclusion for
Qualified Real Property Business Debt
- Part XI Exclusion of Gain of
Principal Residence (Section 121)
- Then check Form 1040, look at
Line 21 Other Income, should be 0.