Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I received a 1099-c and I already received my refund. I

Customer Question
I received a 1099-c...

I received a 1099-c and I already received my refund. I understand I need to do an amended 1040x with 982.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

HELOC from my 1st home, Code F, #5 yes, amount $54200

Accountant's Assistant: Is there anything else important you think the Accountant should know?

I stop paying this in 2009 and now they send this 1099-c

Submitted: 1 month ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
3/21/2018
Tax Professional: Lev, Tax Advisor replied 1 month ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,714
Experience: Taxes, Immigration, Labor Relations
Verified

You may only exclude that COD income (cancellation of debt) from gross income if you are insolvent.

So you will need to prepare an insolvency worksheet and keep it for your record.

Then - you may use form 982 to claim an insolvency exemption.

Please verify.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 1 month ago

If you are insolvent - you may simply exclude the forgiven debt from your taxable income.

On form 982

- check the box 1(b) - Discharge of indebtedness to the extent insolvent (not in a title 11 case)

- list the amount to exclude on line 2.

It is very unlikely that anything in Part II is related to your situation - so leave it blank.

That will allow you not to report the amount of forgiven debt on your tax return and that should not affect you tax returns for following years.

.

To determine your insolvency - use the worksheet on the page 6 in this publication -

http://www.irs.gov/pub/irs-pdf/p4681.pdf
Use all amounts and values BEFORE the debt was forgiven.

You do not need to send the insolvency worksheet with your tax return and do not need to add any notes - you only need to attach a form 982.

You will keep the insolvency worksheet and all other supporting documents with your tax records in case you would be audited.

Let me know if you need any help.

Ask Your Own Tax Question
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,714
32,714 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Child and Dependent Tax Form 2441 Error: IRS Rejected return
Child and Dependent Tax Form 2441 Error: IRS Rejected return due to dependent's social security number being used on someone else's From 2441. Child is my dependent this tax year, I am Head of Househo… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
I'm preparing someone's tax return that needs to be mailed.
I'm preparing someone's tax return that needs to be mailed. They're out of the country. Can they e-sign and I mail it? I know they can e-sign e-filed returns, but not sure about paper returns.… read more
Lev
Lev
Tax Advisor
32,714 satisfied customers
I received a cancellation of debt that increased my income
I received a cancellation of debt that increased my income by 6800, not they are saying my credit for my health care was too large and I owe the 4080 credit back. Does this sound correct? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I have a question on cancellation of debt on a rental
hello - i have a question on cancellation of debt on a rental property. total owed $160,000, amount cancelled $30,000. market value of property $145,000. … read more
Lev
Lev
Tax Advisor
32,714 satisfied customers
I am 77 and unmarried, no children. My gross income is
I am 77 and unmarried, no children. My gross income is $3500. I understand that this means I do not need to file. Do I have to do anything? … read more
abci168
abci168
Principal
27 satisfied customers
In 2017 I tithe $8,000 (or 10%) of all of my gross income.
In 2017 I tithe $8,000 (or 10%) of all of my gross income. Also, in 2017 I purchased a home. With that said, my tax refund was only $4,000. Is tithing money refunded 100%? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
I received several 1099s cancellation of debt forms and
I received several 1099s cancellation of debt forms and included them on my return. However, I received several more after I filed my taxes and want to know if I have to file an addendum OR if I can w… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
Using the 7.5% of gross income for out of pocket medical
using the 7.5% of gross income for out of pocket medical expenses, can I use any part of my assisted living rent? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
Paid taxes on gross income claimed 2dependens 2017 did a
Paid taxes on gross income claimed 2dependens 2017 did a refi mortgage … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I have Adjusted Gross Income of 4332., I had kind of a lean
I have Adjusted Gross Income of 4332. , I had kind of a lean year with me using some savings, I do not have a record of how much. It takes about 10,000 to help me through a year like this I do not kno… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
I am assuming that cancellation of debt income changes my
I am assuming that cancellation of debt income changes my basis for the stock I sold in the MLP limited partnership stock.… read more
Carter McBride
Carter McBride
LLM
967 satisfied customers
I prepared a c-corp trucking company income tax return for
I prepared a c-corp trucking company income tax return for 2015 and 2016 They paid their employee drivers per diem for days away All the records are good but the IRS says I should have only deducted 8… read more
Lev
Lev
Tax Advisor
32,714 satisfied customers
How does IRS return an unsigned tax form? How does IRS
Hello How long does IRS return an unsigned tax form? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
I have a question regarding cancellation of debt in Missouri
I have a question regarding cancellation of debt in Missouri for a mobile home my husband owned in 1998. … read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
I was mailed an cancellation of debt form from a debtor that
I was mailed an cancellation of debt form from a debtor that repossesd a car I had 4 hears ago, and the cancellation of debt was for 17,000. I bought the car in 2011. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,067 satisfied customers
I need my gross income from 2016. Will she be able to help
Will she be able to help me get my gross income for 2016 … read more
abci168
abci168
Principal
27 satisfied customers
I NEED MY 2016 ADJUSTED GROSS INCOME. I NEED GROSS INCOME TO
I NEED MY 2016 ADJUSTED GROSS INCOME JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I NEED GROSS INCOME TO FILE 2017 TAXS JA: Is there anything else … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x