, Answering FAQ'sTurboTax Employee
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
Don't worry! TurboTax will ask you about any cancelled debt, fill out the forms and perform all the calculations for you.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for cancelled debt, follow these steps:
- Select Federal Taxes (Personal in Home & Business.
In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
- Select Wages & Income, and in the next screen, click Explore on My Own.
- Scroll down the Wages & Income screen until you see the Less Common Income group.
- Click on the Start/Update button next to Miscellaneous Income, 1099-A, 1099-C.
- Follow the Prompts.
If you have yet to receive your 1099-C, click here to explore your options.
Remove a Form 1099-C you've entered
- In the upper right, click the Forms button.
- In the left window, select Form 1099-C and then click Delete Form at the bottom of the screen.
- In the lower left corner, click Tools.
- In the pop-up window, select Delete a form.
- 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 CPA Select and find a Tax Professional who can prepare your taxes virtually. This is a service provided by Intuit, the makers of TurboTax.
If you need to correct or change any information you have entered from your 1099-C, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return or it was rejected by the IRS, simply follow the navigation instructions above, and correct or change your information.
- If you have already filed your return and it was accepted by the IRS, you will need to amend your return. Refer to How to Amend a Tax Return You Already Filed.
For questions about printing, see print a copy of your tax return.
- Reporting Canceled Mortgage Debt
- Reporting Canceled Debt for Credit Cards, Car Loans
- Canceled Debt, Is It Taxable or Not?
- Form 1099-A, Acquisition or Abandonment of Secured Property
- Form 982, Reduction of Tax Attributes
- How does bankruptcy effect my taxes?