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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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I received a form 1099-C for debt cancellation in the amount

Customer Question

I received a form 1099-C for debt cancellation in the amount of 9318.00. I know that I have to report this on my tax form & pay income tax on the amount. My question is & I live in Maryland, do I have to report this as income on my state tax form. The state of Maryland did not list this in the booklet on substraction from income.
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.

Hello and thanks you for using Just Answer. If you must report the amount from Form 1099-C as income on your federal tax return you must report the amount from Form 1099-C to the state of Maryland. The computation for Maryland income begins with federal adjusted gross income (AGI).

 

If the amount reported on Form 1099-C is from the cancellation of qualified principal residence up to $2,000,000 cab be excluded from federal and state income.

Marvin,EA and 2 other Tax Specialists are ready to help you
Customer: replied 7 years ago.
Not what I wanted to here, but thanks, XXXXX XXXXX report amount to Maryland.
Expert:  Marvin,EA replied 7 years ago.
Do you qualify for the insolvency exclusion with Form 982, www.irs.gov/pub/irs-pdf/f982.pdf, ?