Tax ? 1099 and amend return

[rdmccaffrey]

My wife and I filed a chapter 13 last Feb (09). I filed our taxes for 2010 already and have already received refund.

After filing I received a 1099-c from a debt buyer for 5200.

I understand that the bankruptcy makes me insolvent so there's no tax liability involved.
However, I know I have to amend my return and include the 1099-c.

I used Turbotax to file our taxes. Turbotax can amend the return, but cannot handle the 1099-c and the form to accompany it to show I'm insolvent and this 1099c isn'
t taxable.

I want to make sure I do this correct. any advice is appreciated.
thanks

[LadyInTheRed]

It should be pretty simple to amend your return without TurboTax. Download form 1040X from the IRS website. Links to the form and instructions are at http://www.irs.gov/taxtopics/tc308.html. The bulk of the form has 3 columns: column A is for the original amounts from your return, column B is for the changes and column C is for the amended amounts. Column A and C should contain the figures from the return you filed. Column B will have zeros all the way down. In part III, explain that you are filing the amendment to include form 982 because you received a 1099-C after you filed your return. Then fill out form 982 and attach it to the 1040X. Form 982 is at http://www.irs.gov/pub/irs-pdf/f982.pdf.

You also may be able to fool TurboTax into generating an amended return. Just tell it you are amending for "another" reason and fill in the reason and get form 982 from the IRS website.

[rdmccaffrey]

Thanks LadyintheRed, working on it now.