What are the tax implications of filing a 1099-C and showing insolvency (if any)? Thank you.

I had a cancellation of debt on an old credit card. When filling out the insolvent work sheet for the time right before the debt the cancelled, I had around $12,000.00 more liabilities vs. assets. What the are implications if I claim the amout on the 1099-C and show insolvency? Thank you!
    No impact if you include 1099-C and Form 982 with return; See http://www.irs.gov/pub/irs-pdf/f982.pdf
    1099-C Box 2 amount goes on Line 2 of 982, check Box 1b for reason, and that's it ...

    If you do NOT use form 982, then Box 2 amount goes on Line 21 of Form 1040 as fully taxable "Other Income" ...

    Note - May have to mail in return. TT supports 1099-C for Main Home debt, possibly not other cases ...
      Contribute an answer

      People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

      1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
      2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
      3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
      4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
      5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.