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11715: 1099-C - Cancellation of Debt and Form 982


1040 Individual Data Entry

Where in the software would I enter a Cancellation of Debt, Form 1099-C?

 

Enter this information in the 99C screen. If the amount is a discharged debt that is excludable from gross income, it should also be reported on Form 982. In that case, select 982 from the For box drop list on the 99C screen, and also complete the 982 screen.

If the amount on your 1099-C is discharged debt that is excludable from income and should show on Form 982 and not on the Schedule 1 line 21 (1040 line 21 in Drake17 and prior) as income:

  1. Verify 982 is selected in the For field on the 99C screen.
  1. Verify that all applicable fields have been completed on the 982 screen. A link to Form 982 is available on the 99C screen (directly beneath line 7 at the right of the screen).

To learn more see IRS Topic 431 - Canceled Debt – Is It Taxable or Not?


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