I know that there has been a lot of talk about 1099-c

[mikeymae]

...but I cant help but ask since we just got one today from our mortgage company. We filed BK jan 6 and was discharged april 24. we had our house foreclosed and now we got a 1099-c and while i was looking at it, the portion where it says bankruptcy wasnt checked. Do I need to worry about ? If this is the case that means I will have to wait for more 1099-C from other creditors? Im freaking out since there is jsut no way we are going to include 108k as part of income.Any advice is greatly appreciated.

[justbroke]

You should eitehr read IRS Publication 908 as you'll need to file an IRS Form 982. I would probably let a tax professional do this for you, since there are some peculiarities of that tax form. Since you surrendered it in Bankruptcy, you merely check the box on IRS Form 982 that the debt was discharged in a Title 11 proceeding. You would not pay any taxes on the "forgiven" debt.

Please do not waste your time trying to get the issuer (of the 1099-C) to "retract" it. It's much easier to just complete the Form 982 and be done with it, rather than fight with the issuer for months or even a year. (I fought with a bank over a 1099 which caused me much grief with the IRS for 3 years!)

[mikeymae]

Thank you. I was thinking Id file for our taxes using hrblock free from the irs website and it did guide me through the form 982 however, I dont think we got all the 1099-c we needed to have. On the contrary, we would like to consult a CPA but my husband had been unemployed since christmas and money is really tight for us. I dont intend to fight with the creditor as I do not want to send a red flag to the IRS.