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.)
- The amount of debt discharged will appear as Miscellaneous Income on Form 1040 line 21.
Federal Section > Interest and Dividends > Interest or Dividend Income
- If there is interest shown, enter it as interest.
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|
|G||Decision or policy to discontinue collection|
|H||Expiration of nonpayment testing period|
|I||Other actual discharge before identifiable event|