1040-US: Entering 1099-C information when all canceled debt is excluded from income

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Question

Do I have to enter the 1099-C information if all canceled debt is excluded from income, or can I just use Screen 982 to produce the form?

Answer

If all of the canceled debt is excluded from income, you are not required to enter the information in Screen 1099C. To generate Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), all of the necessary fields are in Screen 982, located in the Other With Return folder. However, entering information in Screen 1099C is beneficial for the following reasons.

Related topic: Form 1099-C - Cancellation of debt FAQs (1040)

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