Question

1099C and WI STATE TAXES

Forum|Forum|6 years ago
April 12, 2020
1 reply
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I received a 1099C for credit card debt. I filed form 982 because I qualified for insolvency so the debt was canceled off my federal returns. Do I have to claim the amount on my WI state taxes? Any help with this would be appreciated. Thank you!

T

ThomasM125

On your Wisconsin tax return, your federal adjusted gross income is the starting point for your Wisconsin taxable income. That amount would not include the cancelled debt income if you were able to exclude it on your federal tax return.

I read through the instructions for the Wisconsin personal tax return form 1 and saw no reference to cancelled debt income. So, it would appear that the deduction is allowable in Wisconsin.

You should pay close attention to the questions in TurboTax when you go through the Wisconsin tax return section. If you look at all choices that pertain to your tax situation and answer all questions honestly, then your tax return will be complete.

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