Pacun Posted March 31, 2012 Report Posted March 31, 2012 Client got 1099-C for 4k from a credit card company. I have form 982 and I have check 1b (client is insolvent). On line 2, I have entered 4K, which is the amount "excluded from income". Is this all we have to do? Do we have to enter amount on line 21 and then enter a negative number to cancel it out? Quote
Jack from Ohio Posted March 31, 2012 Report Posted March 31, 2012 Nothing on line 21. Be sure client can document all the numbers on the insolvency worksheet. We have seen IRS asking for documentation for both debt and assets. Quote
Pacun Posted April 1, 2012 Author Report Posted April 1, 2012 Thank you. Are you entering anything beyond part 1 question 2? Quote
Jack from Ohio Posted April 1, 2012 Report Posted April 1, 2012 Thank you. Are you entering anything beyond part 1 question 2? No. Part 1 covers it. Quote
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