Support CenterHow do I report Cancellation of debt reported on Form 1099-C when using SureFire?
Cancellation of debt income has many factors that contribute to whether or not the income is taxable. Due to this, Form 1099-C for cancellation of debt is not currently in the SureFire system. We recommend that the preparer visit the IRS website and research when and how to report cancellation of debt based on each taxpayer situation.
Generally, data from a Form 1099-C, Cancelled debt (box 2) is reported on Form 1040, line 21 for 2017 and prior.
But for 2018, 2019 and 2020, it is reported on 1040 Schedule 1 Line 8, for 2021 on 1040 Schedule 1 line 8z, using Wkt 7. However, as noted above there are cases where this should be reported elsewhere, or not reported at all.
If you are excluding income due to due to indebtedness reported on 1099-C you may also want to complete Form 982.
Note: Form 982 is informational, and does not flow to any form in the return. It only shows the IRS the amount you have excluded from and income and the reason you excluded the income
Additional Information
Forinformation on reporting debt cancellations,see theIRS Instructions for Forms 1099-A and 1099-C.
For information on reporting cancelled debt from Form 1099-C, seeIRS General Instructions for Certain Information Returns.
Additional Information
Para obtener la versin en espaol de este artculo de Knowledge Base, haga clic aqu:Cmo reporto la cancelacin de la deuda reportada en la forma 1099-C cuando uso SureFire?
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