Form 1099-C

Tax Slayer entry:

Federal Section > Income > Other Income > Cancellation of Debt (1099-C, Form 982)

  • Form 1099-C is in scope only if it is for Cancelation of Debt for a non-business credit card and if it was not a result of bankruptcy.

Federal Section > Income > Other Income > Exclusions (Form 982)

  • Form 982 is in scope only for part I, lines 1e and 2, qualified main home mortgage forgiveness only (see the flowchart aid.)

Box 2:

  • The amount of debt discharged will appear as Miscellaneous Income on Form 1040 line 21.

Box 3:

This is interest included as part of Box 2. It can be ignored.

Box 6:

Shows the reason the creditor has filed this form. This does not have to be entered but some codes are OUT OF SCOPE

A Bankruptcy OUT OF SCOPE
B Other judicial debt relief
C Statute of limitations or expiration of deficiency period
D Foreclosure election OUT OF SCOPE
E Debt relief from probate or similar proceeding
F By agreement
G Decision or policy to discontinue collection
H Expiration of nonpayment testing period
I Other actual discharge before identifiable event