If i received a 1099-C form for 2012 tax year that was included in bankruptcy (back in 1996), do I fill out both the 1099-C and Form 982?

The type of 1099-C form was for a consumer loan and although i called and confirmed with the original lender that it was indeed included in a CH13 bankruptcy, the 1099-C form's event code is G and not A. When entering the amounts in turbotax for form 1009-C, but tax liability immediately increased and did not go back to the original return amount when completing Form 982 checking box 1A indicating the entire amount was discharged in a bankruptcy (back in 1996!!!)

Do i fill out both 1099-C "and" Form 982, or just Form 982?

    Generally, the amount by which you benefit from the cancellation of debt is included in your gross income. However, under certain circumstances, you can exclude the amount of debt cancellation from your gross income.


    Use Form 982 to report the exclusion of income from the cancellation of debt, and any related reductions of tax attributes.


    Because of the complexity of the “reduction of tax attribute” rules, TurboTax cannot include Form 982 in the step-by-step interview.


    If you are using the desktop version of TurboTax (download or CD-ROM), then you can access, via Forms Mode, the Canceled Debt Worksheet for your Form 1099-C. TurboTax will prepare Form 982 based on the Worksheet.


    Form 982 cannot be completed through TurboTax Online.


    More information is available at this link:



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