How do I exclude 1099-C from income?

There are exclusions and exceptions that allow you to exclude all or part of canceled debt from income.  If you qualify for one of these exceptions such as the debt forgiven is a gift, a student loan or a deductible expense, or exclusions such as bankruptcy, insolvency or cancellation of debt on a qualified principal residence, Turbo Tax will assist you with filling out Form 982 within the program.