1099C from bankruptcy Help

[ljwalters]

Client has 1099C from credit cards discharged in bankruptcy. This goes on 1040 lline 21.

To get it off don't you use form 982? I tried this and the program is still taxing the income. What am I doing wrong?

[Lion EA]

Was your client actually insolvent?

[ljwalters]

yes, but I shouldn't have to go thru that part with the bankruptcy discharg. That work has already been done in the baankruptcy. These were listed as discharged by the courts. Do I still have to go get all that info and start over.

[Jack from Ohio]

Take it off line 21, fill out 982 marking the bankruptcy box.

[ljwalters]

Thanks, That works but is it correct. What about reporting the 1099 C?

[rfassett]

Yes - that is correct. The 1099 C, if in fact the debt was listed in the bankruptcy, should be marked as such. If it is not so marked, then either the debt was not listed or the credit card company screwed up the 1099-C - either way you can anticipate a letter writing campaign with the IRS. If the 1099C is wrong and box 6 is not marked you can ask your client to contact the credit card company for a corrected 1099, but I would not expect too much success at that.

[ljwalters]

Thanks I didn't even notice the check in box 6. I love you guys.

Linda.

One month to go and with every thing going on I only have about half my work done here.

On top ob the problems with my parents, my husband had to have surgery last Wednesday, another day lost

Nothing serious, but it took all day and he will be down for 6 weeks.

I hope there is not more I'm missing this year.