I received a 1099c for a student loan reduction. Does Turbo Tax give me a chance to apply for reduction of tax attributes with an IRS Form 982?

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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:

 

http://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Tax-Relief-for-Cancelled-Mortgage-Debt/INF12033.html



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