Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » how to claim insolvency(sp?) on a 1099-C – Cancellation of Debt?

how to claim insolvency(sp?) on a 1099-C – Cancellation of Debt?

According to my debt settlement company, we may not have to pay taxes on a 1099-C we received if the total amount of our assets were less than the total amount of the settlement. Which it was by a wide margin. I’m doing my own taxes, so I don’t know how I would go about trying to claim this insolvency. The lady said she’d imagine I’d need a form to fill out, but which one she wasn’t sure. Anyone know anything about this?


  1. Cancellation of Debt and the Insolvency Exclusion The general rule regarding cancellation of debt is that it is a taxable event. But there are some exceptions. The...

  2. When making a debit versus asset list, in order to claim insolvency for IRS (1099-C ), I know I must list? home, furniture, car, jewelery, etc. as assets, but do I also list a 401K? ...

  3. Debt Settlement, 1099 for Credit Co, and Insolvency? For Credit Card debt settlement, what happens if one spouse is insolvent, but the other isnt? I am trying to...

  4. Can I file Form 1040A with Form 982 for cancellation of debt in the case of insolvency? Thank you? I have debt cancellation in the amount of $10k. I was insolvent at the time. If I file form 982,...

  5. has anyone claim insolvency on form 982? I received a debt cancellation from a creditor that i settled with and needed to fill out form 1099c..then i...

Written by

Filed under: Insolvency · Tags: , , , ,

2 Responses to "how to claim insolvency(sp?) on a 1099-C – Cancellation of Debt?"

  1. Wayne Z says:
    Form 982

    This form may or may not be available in most software packages.

  2. Sharon T says:
    You can find the form and worksheets you need by going to and searching for it. Do read all the information carefully.

    In many cases you will need to pay tax on part or all of this settlement amount, but the only way you’ll know for sure is to run through the process.

    This may be a year when it will be worthwhile to engage a qualified tax professional.

Leave a Reply

Connect with Facebook


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player