Bankruptcy
Menu Path: Income > Uncommon Income > Canceled Debt (1099-C)
If you received a Form 1099-C for cancellation of debt income, you can enter that amount on the Canceled Debt (1099-C) Information screen. If the cancellation of debt income was part of your bankruptcy, then none of it will end up being taxable income.
Canceled debt income due to bankruptcy proceedings is one of five types of canceled debt that is excluded from income.
If you received a Form 1099-C for cancellation of debt income, you can enter that amount on the Canceled Debt (1099-C) Information screen. If the cancellation of debt income was part of your bankruptcy, then none of it will end up being taxable income.
Canceled debt income due to bankruptcy proceedings is one of five types of canceled debt that is excluded from income.
