What is a 1099-C form used for?

According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you. You’ll receive a Form 1099-C, “Cancellation of Debt,” from the lender that forgave the debt.

Can you file form 982 electronically?

The easiest way to find/file form 982 in TurboTax Online is to go to: Sign into TurboTax Online and click “Take me to my return.” (if not already open.) Once you are in your return on the left-hand side of the TurboTax Online screen click on TAX TOOLS and then TOOLS.

Do you have to file a 1099-C cancellation of debt?

Form 1099-C: Cancellation of Debt is required by the Internal Revenue Service (IRS) to report various payments and transactions made to taxpayers by lenders and creditors. These entities must file Form 1099-C if $600 or more in debt was canceled or forgiven.

What happens if you don’t file a 1099-C?

In short, you’ll have to pay taxes on the extra income. That might mean your refund is reduced or you owe more taxes than you would otherwise. In cases where the 1099-C canceled debt falls under an IRS exclusion—which means you don’t have to pay taxes on all or some of the income—you still may need to file a form.

How do I report a 1099-C Cancellation of Debt?

While you don’t have to file the 1099-C, you should use it to prepare and file your income tax return. In some cases, your forgiven debt is taxable – and in some it’s not. When it is taxable nonbusiness debt, you’ll use the copy of the 1099-C to use to report it on Schedule 1 of Form 1040 as other income.

How do I file Form 982?

To enter Form 1099-C information in your TaxAct® return: From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.

How does form 982 work?

Form 982 is used to determine, under certain circumstances described in section 108, the amount of discharged indebtedness that can be excluded from gross income.

How do I report a 1099-C cancellation of debt?

Do you have to file a 1099-C form?

Form 1099-C must be filed regardless of whether the debtor is required to report the debt as income. The debtor may be an individual, corporation, partnership, trust, estate, association, or company.