If you have determined that debt was canceled, but you did not (and do not expect to) receive a Form 1099-C Cancellation of Debt, you may still have cancellation of debt income. To determine whether you have cancellation of debt income, or if you have received a Form 1099-C, complete the Cancellation of Debt topic.
To report cancellation of debt in the TaxAct® program:
Note. On the screen titled Cancellation of Debt - Form 1099-C Information, enter the information from Form 1099-A as follows:
Based on your entries, the system will compute any canceled debt income. Under certain circumstances you may exclude the amount of canceled debt from your gross income. You would need to select Yes on the screen titled Cancellation of Debt - Summary, if you would like to review Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).
The next step is to compute any potential gain or loss. You must do this whether or not any debt was canceled.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.