Question

1099-c Cancellation of Debt

Forum|Forum|2 years ago
February 28, 2024
2 replies
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I received a 1099-C cancellation of debt for a Farm Loan Payment.

Am I able to use turbo tax to file my taxes?

Yes. Here is a Guide to Debt Cancellation and Your Taxes

What version of TurboTax are you using? If you're using an online or mobile version of TurboTax, you'll need to switch to the Desktop software so you can follow these instructions.

With your return open in the TurboTax Desktop software, click the Forms icon at the top or by selecting it from the View menu. This will put you into Forms mode.
Select Open Form (in the left pane on Windows, in the top menu on Mac) and type in 1099-C.
Select Form 1099-C: Cancelation of Debt and Open Form.
Enter the name of the creditor and then select Add Form.
Type in the info from your paper 1099-C.
Now go back to the left pane and open Canceled Debt (X) (X is your 1099-C creditor).
Scroll down until you reach the part that pertains to your situation (Parts III through XI). There are nine parts but you only need to fill out the one that applies to you.
- If you're filling out Part VIII (Exclusion for Insolvency) you must also select the QuickZoom button so you can fill out the Statement of Insolvency.
Next, select Form 982 in the left pane (skip steps 8 and 9 if your debt was canceled due to insolvency or bankruptcy).
Complete Part II (Reduction of Tax Attributes) on Form 982.
Now select Schedule 1 in the left pane to verify that your debt has been excluded. There should be no canceled debt income on Line 8.
Finally, select the Step-by-Step button at the top to go back to interview mode.

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M

Manda8Author

All it is doing is clearing my information from 2022 and what I had started from 2023. It didn't even give me the option of downloading a desktop version! Help please!

DawnC

Employee

You can enter in TurboTax Online as long as you only have one 1099-C. If you received a 1099-C for your main home and another 1099-C for something else (like a credit card, car loan, or second mortgage) you won't be able to use TurboTax, as we don't support this.

To enter your 1099-C:

Open or continue your return.
Search for 1099-C or 1099C (lowercase also works).
Select the Jump to link at the top of the search results.
On the Tell us about your canceled debt screen, select the type of canceled debt (main home or other) and then select Continue.
Go through the screens to answer any follow-up questions about your canceled debt.
Follow the instructions to enter info from your 1099-C.

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CatinaT1

You followed these instructions to switch to Desktop? If that does not work, you can call Customer Service and they can help you get switched. Here is a link:  Turbo Tax Customer Service

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