1099-C

[Pacun]

Where do I enter 1099-C cancellation of debt in ATX? Primary residence so no taxes paid.

[Kimberly K]

Where do I enter 1099-C cancellation of debt in ATX? Primary residence so no taxes paid.

Click on other income, and in the list is cod. But only after you have figured out what is taxable!

[Pacun]

Click on other income, and in the list is cod. But only after you have figured out what is taxable!

I checked line 21 but I have to deduct somewhere else.

[TAXBILLY]

Form 982.

taxbilly

[Tax Prep by Deb]

Only include the taxable amount on line 21. If total cancelled debt is excluded, the form 982 tells IRS that you have handled the 1099C

Deb!

[MAMalody]

Is there an IRS Publication or other information that deals in this area. I have never had to deal with one and it may be something I should look into, considering the times we are in.

[TAXBILLY]

http://www.irs.gov/pub/irs-pdf/p4681.pdf

taxbilly

[Pacun]

http://www.irs.gov/pub/irs-pdf/p4681.pdf

taxbilly

Thank you. I have commented before about 1099-C and I now remember the form 982. When I had the client in front of me, I didn't remember any of this. I told him that he was not going to pay any taxes on the 1099-C. I told him to sign the efile form and that I was going to call him when ready to efile.

[joanmcq]

How can you have them sign the efile form before you've finished the return?

[Pacun]

How can you have them sign the efile form before you've finished the return?

The client signs 1040 and if 1040 is not going to change, I don't see any problem. How many times has the client forgotten to verify if they have income interest? What do you do, you make them go home to verify and then come back to sign?

I am adding this: I finished everything, except that I mentioned the Debt forgiveness on line 21 and a deduction on the same line. I told him the end result is the same but I wasn't sure where I was going to report that he qualified for "not paying taxes on debt forgiveness because it was primary residence" (Condo where he lived for 4 years). Client gave back the condo because he is retired and cannot afford it anymore. He never refinance and he lives far away from my office and uses a walking cane. In any event, I told him, "if your refund changes", I will need you to sign again. I will call you when ready to efile.