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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13337
Experience:  15years with H & R Block. Divisional leader, Instructor
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I received a 1099-C indicating a student loan forgiveness of

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I received a 1099-C indicating a student loan forgiveness of about $8000 from the Iowa Student Loan Liquidation Corp. The loan was forgiven because I worked as a teacher in an area of need for the required timeframe. I understand this qualifies as an EXCEPTION and does not need to be claimed as taxable income. However, I am unsure how to complete Form 982. Which lines do I need to complete for Student Loan Forgivenss on Form 982?

Robin D :

Hello and thank you for using Just Answer,
Generally when a student loan is cancelled and the exception applies the 1099C is not sent and no Form 982 is required. I am checking now to see if you are supposed to actually file the Form 982 or is anothe rIRS procedure applies.

Robin D :

There is not a procedure to use the 982 when the student loan was involved and you are excluded from including it as income. You would need to keep your documentation that shows the agreement for your work in exchange for repayment and attach a statement to your return that explains why you were not required to include the cancelled amount.

Robin D :

Keep a copy of all for your records should the IRS ask about it in the next three years.

Robin D :

Did you need further clarification?

Robin D :

The system says you were typing

Robin D :

I am here if you need to add more

Customer:

I guess I somewhat unsure why I received the 1099C. As far as I can determine the loan meets the 3 requirements to be an exception. Any way I can confirm this?

Robin D :

Your positive rating is always thanks enough.

If you could also participate in the very short survey that Just Answer will send you by e-mail I would appreciate that very much.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.

Robin D :

Sorry

Robin D :

System sent the above.

Robin D :

You would need to contact the Iowa Student Loan Liquidation Corp

Robin D :

They do have the programs but only they could tell you if yours was an approved one.

Robin D :

They may have sent the 1099C by mistake

Robin D :

I accessed their site but only general info available

Robin D :

I would not be able to see which program they used for your service specifically.

Customer:

okay... I will follow up with them to clarify. There was no specific action taken by me recently to request the loan forgiveness so to be honest I was quite surprised when I received the 1099C.

Robin D :

Yes, you need to contact them directly. If you were not in the program and had not applied then the 1099C may be a big mistake.

Robin D :

I sincerely XXXXX XXXXX works to your benefit.

Customer:

Thanks for your help...

Robin D :

NOW I CAN SAY............

Robin D :

Your positive rating is always thanks enough.

If you could also participate in the very short survey that Just Answer will send you by e-mail I would appreciate that very much.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.

Robin D. and 3 other Tax Specialists are ready to help you

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