Glenndd
Level 2
04-12-2024
08:43 AM
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I used form 982 in the past when a 1099-C was received to cancel the tax on this transaction. I would select 1b, then enter the amount of cancelled debt on line 2 and line 10a. This would cancel the tax due for this cancelled debt.
Yesterday I attempted to do this again and the tax was not removed. Was there a change that I am not aware of or something new on the form????????
I would appreciate your input
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qbteachmt
Level 15
04-12-2024
10:55 AM
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You can confirm if that meets any exception or exclusion:
https://www.irs.gov/taxtopics/tc431
Otherwise, it is taxable.
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Don't yell at us; we're volunteers
Level 15
04-12-2024
12:00 PM
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Ive always used the Canceled Debt Worksheet and fill it in, theres an insolvency worksheet that will compute the amount of insolvency for you and complete the 982..
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