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Cancellation of Credit Card Debt

Level 2

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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2 Comments 2
Level 15

You can confirm if that meets any exception or exclusion:


Otherwise, it is taxable.

"Level Up" is a gaming function, not a real life function.
Level 15
Level 15

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..