ljwalters Posted March 18, 2012 Report Share Posted March 18, 2012 Client has 1099C from credit cards discharged in bankruptcy. This goes on 1040 lline 21. To get it off don't you use form 982? I tried this and the program is still taxing the income. What am I doing wrong? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 18, 2012 Report Share Posted March 18, 2012 Was your client actually insolvent? Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 18, 2012 Author Report Share Posted March 18, 2012 yes, but I shouldn't have to go thru that part with the bankruptcy discharg. That work has already been done in the baankruptcy. These were listed as discharged by the courts. Do I still have to go get all that info and start over. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 18, 2012 Report Share Posted March 18, 2012 Take it off line 21, fill out 982 marking the bankruptcy box. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 18, 2012 Author Report Share Posted March 18, 2012 Thanks, That works but is it correct. What about reporting the 1099 C? Quote Link to comment Share on other sites More sharing options...
rfassett Posted March 18, 2012 Report Share Posted March 18, 2012 Yes - that is correct. The 1099 C, if in fact the debt was listed in the bankruptcy, should be marked as such. If it is not so marked, then either the debt was not listed or the credit card company screwed up the 1099-C - either way you can anticipate a letter writing campaign with the IRS. If the 1099C is wrong and box 6 is not marked you can ask your client to contact the credit card company for a corrected 1099, but I would not expect too much success at that. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 18, 2012 Author Report Share Posted March 18, 2012 Thanks I didn't even notice the check in box 6. I love you guys. Linda. One month to go and with every thing going on I only have about half my work done here. On top ob the problems with my parents, my husband had to have surgery last Wednesday, another day lost Nothing serious, but it took all day and he will be down for 6 weeks. I hope there is not more I'm missing this year. Quote Link to comment Share on other sites More sharing options...
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