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    juri2525's Avatar
    juri2525 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 7, 2009, 07:31 AM
    Filing form 982 and 1040
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 11, 2009, 03:29 PM
    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.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Feb 11, 2009, 08:35 PM

    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
    beenterprize's Avatar
    beenterprize Posts: 1, Reputation: 1
    New Member
    		  
    #4

    Mar 9, 2012, 10:32 AM
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Mar 9, 2012, 12:34 PM
    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.
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