Get the free Form 982

This form is used to report the exclusion of discharged indebtedness from gross income and the reduction of certain tax attributes as per section 108 of the Internal Revenue Code.

How to fill out form 982

How to fill out Form 982

1. Obtain Form 982 from the IRS website or a tax professional.
2. Fill in your personal information, including your name, address, and Social Security Number.
3. Indicate the type of debt discharged and the amount.
4. Choose the appropriate box for the reason the debt was discharged.
5. Complete the necessary parts related to your tax situation.
6. Review the form for accuracy and completeness.
7. Sign and date the form.
8. Attach the form to your tax return when filing.

Who needs Form 982?

1. Individuals who have had debt discharged due to certain qualifying events, such as bankruptcy or insolvency.
2. Taxpayers who need to exclude canceled debts from their taxable income.

People Also Ask about

What IRS forms can cancel your debt?

Form 1099-C. Lenders or creditors are required to issue Form 1099-C, Cancellation of Debt, if they cancel a debt owed to them of $600 or more. Generally, an individual taxpayer must include all canceled amounts (even if less than $600) on the "Other Income" line of Form 1040.

How do I prove insolvency to the IRS?

To do this, you must file Form 982. You can only claim balance-sheet insolvency to the IRS, not cash-flow insolvency.

What 1099 is used for debt forgiveness?

You should receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.

What is form 982 exemption?

To claim a canceled debt amount should be excluded from gross income, the taxpayer needs to complete IRS Form 982 and attach the completed form to their return. Form 982 notifies the IRS of the amount of canceled debt that should be excluded from the gross income and under which exclusion.

How do I legally cancel my debt?

If you pay off your debt or negotiate an agreement with the debt collector to pay a lesser amount before going to trial, you can settle your case and have it dismissed. But be aware that your case won't be dismissed automatically if you settle. Make sure the Plaintiff dismisses the case.

What is a form 982 for cancellation of debt?

Form 982 is used to determine, under certain circumstances described in section 108, the amount of discharged indebtedness that can be excluded from gross income.

What is an example of discharge of indebtedness?

The discharge of indebtedness, in whole or in part, may result in the realization of income. If, for example, an individual performs services for a creditor, who in consideration thereof cancels the debt, the debtor realizes income in the amount of the debt as compensation for his services.

What is the tax form that can erase your debt legally?

About Form 1099-C, Cancellation of Debt. Internal Revenue Service.

For pdfFiller’s FAQs

What is Form 982?

Form 982 is a tax form used by taxpayers to request the discharge of indebtedness income and to apply for a reduction of tax attributes when the debt is canceled or forgiven.

Who is required to file Form 982?

Individuals, corporations, and partnerships that have had canceled or forgiven debt must file Form 982 to report the tax implications of that cancellation.

How to fill out Form 982?

To fill out Form 982, taxpayers must provide their basic information, describe the canceled debt, and identify which tax attributes are being reduced due to the discharge of indebtedness. Specific guidance may be found in the IRS instructions for the form.

What is the purpose of Form 982?

The purpose of Form 982 is to determine how discharged debt affects a taxpayer's taxable income and to allow taxpayers to reduce their tax attributes as necessary when debts are forgiven.

What information must be reported on Form 982?

Form 982 requires information such as the amount of cancelled debt, the reasons for the cancellation, and the specific tax attributes that are being reduced due to the discharge.