1040-US: Amending a return because previously canceled debt was repaid and included in income

Alerts and notices
Leave feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Question

What do I do if my client repaid a previously canceled debt that was included in income?

Answer

If canceled debt is included in income and then later repaid, Form 1040X must be filed for the year the income was reported. Form 1040X can be filed only if the statute of limitations is still open, which is generally three years after the due date of the original return.

Related topics 

Share This