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Download & Install
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Preparing My Taxes
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  - 2012 Tax Law Changes: We've Got You Covered!
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Form 982, Reduction of Tax Attributes

Updated: 5/14/2013

Article ID: GEN85264

Generally, the amount by which you benefit from the cancellation of debt is included in your gross income. However, under certain circumstances, you can exclude the amount of debt cancellation from your gross income.

Use Form 982 to report the exclusion of income from the cancellation of debt, and any related reductions of tax attributes.

Important. We generally recommend, particularly if you are reporting any type of debt cancellation other than qualified principal residence indebtedness, using the CD/Download version of TurboTax. Under these circumstances, Form 982 entries will need to be made manually in Forms view, which is only available in the CD/Download version. Which version am I using?

For more information regarding the discharge of mortgage debt, see 1099-C, Cancellation of Mortgage Debt.

For more information regarding the discharge of non-mortgage debt, see Reporting Your 1099-C Canceled Debt for Credit Cards, Car Loans.

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