Taxes 982 form

[jsperk]

Hello,

I was reading about the 982 form. I'm really confused of what it is. My 13 bankruptcy ended this year. Are the debts that were not paid off in full going to go as income? I have a feeling I will be owing a lot more to the IRS than I was thinking. Any advice would be appreciated.

Thanks

[LadyInTheRed]

No, debts discharged in bankruptcy are not taxable income. Form 982 is used to tell the IRS that the debt that a creditor reported as canceled on a 1099 was discharged in bankruptcy (or other reasons) and is not taxable income. If you didn't receive a 1099c, you don't need to worry about it. Most people who file a personal BK don't receive a 1099c because a creditor is only required to send one for debt discharged in BK if the debt was incurred for business purposes.

[jsperk]

Thanks. Our local tax collector sent a letter telling us we should fill out the 982 form. Didn't know anything about til that letter came.

[LadyInTheRed]

Thanks. Our local tax collector sent a letter telling us we should fill out the 982 form. Didn't know anything about til that letter came.

Did the tax collector send a 1099?