What is Form 982?
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 for a qualified principal residence indebtedness, aka mortgage debt relief.
Search for 982 in your TurboTax program and then click the "Jump to" link to access the cancellation of debt section. You should have a 1099-C to report the amount of cancelled debt. (You'll need to use TurboTax Deluxe or higher to file Form 982.)
If your canceled debt isn’t directly related to the purchase of a main home, the IRS has strict guidelines for determining how to report it. There are several options specific to each taxpayer’s situation. To determine which apply to you, we recommend you consult a tax professional or see IRS Publication 4681 or Publication 544.