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form 982 and 1099-c

HOPE2
Level 9

Hi to all folks, clients has three 1099-Cs because of cancellation credit card liability. First, I entered three 1099-Cs and also filled out form 982 and entered whole amount of them on line 1b. I read IRS instruction then I understood that should delete 1099-Cs and keep form 982. Two of 1099-Cs have same date of event and one it has different event date. On line 1b of 982, I explained description of the issuer and the amount (right click on the whole amount). Am I right? if not please correct me. And how about insolvency worksheet? Should it be attached e-file return? 

The courtesy of a reply would be appreciated.

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HOPE2
Level 9

I got it , I found everything now I am ok, thanks Lisa, God blessed you.

View solution in original post

4 Comments 4
Just-Lisa-Now-
Level 15
Level 15

I fill out the 1099Cs then use the Canceled Debt worksheet.  They should all be shown in there.

I always have the client fill out the Insolvency worksheet, once you've got that completed the software does the rest automictically.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
HOPE2
Level 9

Thanks Lisa. This is first time for me to file canceled debt so really need more how to do that. As I understood, first fill out 1099-Cs as usual.

Next, I Filled out chanced debt worksheet. I did them for each one. 

You said: 

"I always have the client fill out the Insolvency worksheet, once you've got that completed the software does the rest automictically"

For above part, do you mean : client should fill out insolvency worksheet and attach it to e-file or  should I fill it out on the software? Need a hint please Lisa for this part.

After this part what should I do?

How about form 982? In part II on this form which line is related to credit card cancelation?

I entered on line 1b the whole amount of insolvency but nothing change on Sch 1, so that still I have positive amount on Sch 1. 

Thank you for all the help you have given me as of being here, the community.

 

 

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Just-Lisa-Now-
Level 15
Level 15

Its been a few years since Ive had one, but I thought it tallied all the 1099Cs into 1 canceled debt worksheet. 

Once you complete the Insolvency worksheet (I print it out and send it home with the client for them to complete, then I input their figures on the screen) that will give you the amount of insolvency on the Canceled Debt worksheet and the 982 automatically populates, Ive never had to fill it out myself.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
HOPE2
Level 9

I got it , I found everything now I am ok, thanks Lisa, God blessed you.