How to File Taxes with a 1099C

If you are issued a 1099c for a tax season, then you have had a debt cancelled for some reason. Usually it is due to bankruptcy, foreclosure, or lack of assets to pay the amount owed to a creditor. Filing a 1099c can be done online. Here is how you can still efile with a 1099c.

Things You'll Need

• 1099c
• Internet
• Efile

Instructions

1. Collect all of your tax documents before filing taxes. This will include all 1099's, w2's, and receipts for deductions.

2. Add the 1099c to your income if you did not file bankruptcy. If you did file bankruptcy or have reductions to your attributes, you will complete a form 982 which is the reductions of Tax Attributes due to discharge of indebtedness. See resources for an example of a completed 982 from. The form 982 can be printed from the irs.gov website. You can now complete the form 982 online when efiling, or you will have to mail a copy to the IRS.

3. Complete a form 982 for all 1009c forms you receive. See resources for information.

4. Enter the amount of income you need to report from the 1099 onto your 1040 form. If you filed bankruptcy and have a reduction, you will NOT need to report this as income on your 1040.

Tips & Warnings

• Collect all documents before filing.

• Complete the form 982

• Efile if possible, it is faster and secure.

• Contact the IRS or a tax professional if you need help with any of the forms listed.

Resources

• Sample Form 982
• IRS.gov