TurboTax FAQ
TurboTax FAQ
554 people found this useful

Form 1099-C, Cancellation of Debt

What is Form 1099-C?

If you are liable for a debt that is canceled or forgiven you will receive a Form 1099-C and must include the canceled amount in gross income. If you meet certain exclusions or exceptions you may be able to exclude all or part of the amount from taxation. TurboTax will help you determine if you are eligible for any exclusions or exceptions.

Entering Form 1099-C into TurboTax

In TurboTax, jump directly to the entry screen for cancelled debt:

  1. In the TurboTax search box, enter 1099-c and press Enter,
    Then click on the Jump to 1099-c link.
  2. On the Tell Us About Your Canceled Debt screen, answer the questions about your form and follow the interviews.

Remove a Form 1099-C you've entered

TurboTax CD/Download:

  1. In the upper right, click the Forms button.
  2. In the left window, select Form 1099-C and then click Delete Form at the bottom of the screen.

TurboTax Online:

  1. In the lower left corner, click Tools.
  2. In the pop-up window, select Delete a form.
  3. Next to Form 1099-C, click the Delete link.

What if I received multiple 1099-Cs?

In general, you may only have one 1099-C per return using TurboTax. An exception is if you have more that one 1099-C for one type of cancellation for a debt on your main home. For example, you could report two 1099-Cs from different lenders for a foreclosure on your main home.

In situations where you need to file more than one 1099-C, you'll need to have your return completed by a tax preparer.

If you don't have a Tax Professional, you can visit TurboTax Personal Pro and find a Tax Professional who can prepare your taxes virtually. This is a service provided by Intuit, the makers of TurboTax.

Related Information: