Do you report 1099C on 1040 if filing 982

[dancer9]

If you qualify and file a 982, Does the 1099 C debt cancellation income still get reported on the 1040 form under income? --I can't find the answer to this anywhere on the Forum on Blogs, Can anyone answer this, that filed 982??? thanks!

[Diane Kennedy]

Sorry for the delay in response. We've been tracking an issue with LLCs and got a little overly focussed.

Here is a quote from the instructions on Form 1099-C

"How do I report the forgiveness of debt that is excluded from gross income?

(1) Check the appropriate box under line 1 on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to indicate the type of discharge of indebtedness and enter the amount of the discharged debt excluded from gross income on line 2. Any remaining canceled debt must be included as income on your tax return. "

Don't report the income on the Form 1040, but do report it on Form 982.