When Form 1099-C/Form 1099-A is Taxable Income

Add "Additional Income Including Social Security Benefits" Page, and enter this income into "Other Income".

When Form 1099-C/Form 1099-A that include Nontaxable Income:

Any amount of the Form 1099-C/Form 1099-A that qualifies as nontaxable income either by an Exemption or Exception must be reported on Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness.

Add Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness. See option A above for how to add this form to your return.

IMPORTANT

• When the entire amount of Form 1099-C/Form 1099-A is taxable, do not add Form 982.

• When the entire amount of Form 1099-C/Form 1099-A is nontaxable, do not enter as Other Income.

• Form 1099-C/Form 1099-A with both taxable and nontaxable income, must have the applicable entered into both pages in the system.

CAUTION: Form 982 is a reporting form, not a calculating form.

Total amount of Form 1099-C:

Enter Form 1099-C total into this box. Do not allocate the taxable/nontaxable amount here.

The taxable amount must be entered into Additional Income Including Social Security Benefits Page.

Check the box for the Exemption or Exclusion the Form 1099-C income qualifies for. Form 1099-C income is considered taxable for all other income not listed. If you are unsure how to treat this income, see IRS Form 982 Instructions.

IMPORTANT

Make sure the correct box is checked. This can be very complex, depending on what the Form 1099-C income is from.

The Explanation of Basis Reduction is required when Form 982 is attached to return.

Qualified Farm Indebtedness:

Do not enter any non-farm indebtedness in to any of first three boxes shown below.