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Question

Debt Cancellation for Massachusetts State Tax Filing "?"

Forum|Forum|6 years ago
February 5, 2020
2 replies
0 views

Hello! I hope that your day is going well.

I have a Massachusetts State tax filing question that I was unable to get a straight answer from speaking to the Massachusetts Department of Revenue.

2019 Form 1099C (debt cancellation) in the amount of $26,031.40 discharged no withholding in a bankruptcy court proceeding (Chapter 7).

This was an unsecured loan for a Timeshare purchase. It is NOT counted as income for Federal Tax filing in TurboTax but it is count as income for Massachusetts State Tax filing.

My question, is the $26,031.40 exempt from being counted as income in the state of Massachusetts and if so, how do I exclude it from being counted as income in TurboTax form the Massachusetts State Tax filing?

Thank you so much and have a great day!

No, unfortunately MA decoupled from the Federal law and does allow for an exclusion, even if Bankruptcy was applicable for a Federal exclusion.

Please explain exactly which law section you are referring to!?? I don’t understand, Massachusetts decoupled from any and all bankruptcy laws??

You are commenting on an old thread. What is your question? Or what are you trying to do and we can help.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Please cite the law you are talking about??

I have no idea what you mean, Massachusetts decoupled from allowing ANY AND ALL bankruptcy? Please explain