Due to my being broke, my credit cards were settled and paid by negotiation by a family member. I now have a 1099-C-I was told to I can file a 982 due to insolvency-

How do I fill the form out, can it be done with a 1040 (EZ) and can it be done online?
Last question, can I still have direct deposit for (any) refund?

Thanks

Sorry, but filing Form 982 applies ONLY IF you had a house foreclosesure.

With forgiven credit card debt, you OWE the taxes. You may need to set up a payment plan with the iRS.

You will report 1099-C as income on your tax return. Read about debt cancellation, Your U.S. Tax Return: The U.S. Income Tax Topics 1 (http://taxipay.blogspot.com/2008/08/us-income-tax-topics-1.html)

The answer provided by ATLANTA is not correct. You need to enter the 1099C. According to IRS publication 4681 "nonbusiness credit card debt, personal vehicle repossesion" are included with foreclosures or loan mods.
First, I would recommend at professional do your taxes this year. You SHOULD complete a 982. If you haven't filed for a bankruptcy there is an insolvency worksheet that should be completed to determine if any or all of the debt cancellation is taxable. Even with a 982, you can e file and get direct deposit. Again. I strongly recommend you see a professional. He/She should be able to do this. If they aren't familiar with this refer them to IRS publication 461.

Beenterprise is correct; I stand corrected.

I also endorse her recommendation for you to get professional help, and that help must be local, because the issue require face-to-face communication to get proper resolution.