Ashot32
Level 2
‎01-25-2022 02:22 PM

Hello Guys,

One of my taxpayers gave me a 1099-C to include in his tax filings. The form has an amount in Box 3 as well besides Box 2. I already put Box 2 in ProConnect. Where do we input Box 3 (interest) amount in ProConnect? This is a credit card debt that is cancelled by the bank.

Thank you!

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George4Tacks
Level 15
‎01-25-2022 02:46 PM

Assuming a 1040, this would be personal interest that is not deductible, so there would be no entry. 

Was the client insolvent? 


Answers are easy. Questions are hard!
Ashot32
Level 2
‎01-25-2022 02:53 PM

No, the client is not insolvent. So I just input the Box 2 amount of debt discharged on Sch 1, line 8 as other income? Thank you!

sjrcpa
Level 15
‎01-25-2022 03:14 PM

Yes.


The more I know the more I don’t know.
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Ashot32
Level 2
‎01-25-2022 04:46 PM

Thank You!