I received a 1099-C form for charged off credit card debt. I entered the information into the federal return but where and how do I enter it into the state return?

[Lisa995]

You shouldn't need to enter it again, it should carryover from the federal return...which state are you in?

[cyneramc]

I'm from PA. It asks about Misc Income, like charged off debt, so I thought that since it was separate from my W2 income that I would have to enter it in somewhere separately like I did for the Federal return.

[Lisa995]

Im not familiar with PA and whether they need to have a separate entry for this.  Some states start with the Federal AGI which would already include the 1099C amount.

@Carl  or @VolvoGirl  whos on the east coast that's familiar with PA state returns?

[Carl]

I'm in FL and don't deal with state returns at all since FL doesn't tax personal income. When it comes to states, I only know about Hawaii, and I probably know just enough about Hawaii state taxes to be dangerous. 🙂
Generally though, information entered on the federal side is automatically "carried over" to the state program if the state requires it to be reported. So I would expect it to already be on the state return somewhere as income. From what I gather, it "should" already be included in gross compensation on line 1a of the PA-40.

[cyneramc]

From what I can see Turbo Tax pulled my compensation from line 16 of my W2 but it isn't showing me if the AGI is anywhere else on the form. I just don't want to not include it and have it be wrong. When I add in the amount from the 1099-C it takes me from owing nothing to owing $47 but then again I don't want to pay that if I don't actually owe it.

[Lisa995]

Is @re2boys  in PA ?   @SweetieJean  where are you?    I know Ive seen a SuperUser from PA before.

[re2boys]

Yes, I am a PA resident and somewhat focus on PA related questions.  I'm on line intermittently.

[re2boys · Accepted solution]

Cancellation of personal debt such as for credit card debt is not income subject to PA personal income tax and is not reportable.  PA does not use federal AGI in any way to calculate the PA tax.

If the debt was related to business expenses then it would be reported.  Here's a good summary:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/1542/~/does-a-taxpayer-have-to-include-as-in...