If you received Form 1099-C Cancellation of Debt and are eligible to exclude a canceled debt from your income because of any of the following, file Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) with your return. Note. If you didn't receive a Form 1099-C from the lender, you probably don't have canceled debt income and shouldn't need to file Form 982):
The cancellation is intended as a gift
To enter Form 1099-C information in your TaxAct® return:
If you qualify for this exclusion, you would use Form 982 to report the exclusion of the canceled debt. Form 982 will follow the 1099-C interview.
See IRS Publication 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments for more information.