using form 982 for insolvent tax payer

[ljwalters]

do you still put the cod on line 21 if so how do you get it back off.

Cancelled credit card debt 25,000 insolvent by 62,000.

[JohnH]

If there is no reduction in the COD income, it goes on Line 21 of the 1040.

If you are going to exclude all or part of it, the COD income goes on the 982. Then you do the math and if any of it remains taxable, the taxable amount goes to Line 21.

[ljwalters]

Thanks JohnH