Go to for instructions and the latest information. Form 982 (Rev. March 2018) Department of the Treasury Internal Revenue Service Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Attach this form to your income tax return. Go to

What does qualified acquisition indebtedness mean on IRS Form 982?

Qualified acquisition indebtedness is (a) debt incurred or assumed to acquire, construct, reconstruct, or substantially improve real property that is secured by such debt and (b) debt resulting from the refinancing of qualified acquisition indebtedness to the extent the amount of such debt doesn’t exceed the amount of debt being refinanced.

What is excluded from gross income on Form 982?

Include on line 2 the amount of discharged qualified principal residence indebtedness that is excluded from gross income. Any amount in excess of the excluded amount may result in taxable income. See Pub. 4681 for more information.

Can you exclude discharged indebtedness on Form 982?

However, under certain circumstances described in section 108, you can exclude the amount of discharged indebtedness from your gross income. You must file Form 982 to report the exclusion and the reduction of certain tax attributes either dollar for dollar or 33 1 / 3 cents per dollar (as explained later).

Where to mail Form N-400 fee waiver request?

For example, if you are requesting a fee waiver for Form N-400, Application for Naturalization, you must mail the Form N-400, Form I-912, and supporting documentation to the address listed in the Form N-400 Instructions.

How to file a request for a fee waiver?

To file your completed Form I-912, attach it and all supporting documentation to the application or petition for which you are requesting a fee waiver.

How to request a fee waiver for DACA?

Form N-600K, Application for Citizenship and Issuance of Certificate under Section 322. VAWA self-petitioner (such as Forms I-485, I-601, and I-212). You may not file Form I-912 if you are requesting consideration of Deferred Action for Childhood Arrivals (DACA). There are no fee waivers for DACA.

How is insolvency determined on IRS Form 982?

Unfortunately, the IRS instructions say nothing about the correct method for determining insolvency across multiple settlements. Further, taxpayers’ eyes tend to glaze over when they reach Part II of Form 982 and try to figure out what the IRS means by “reduction of tax attributes.”

Is the form 982 called the tax form from Hell?

Publication 4681 provides detailed instructions for completing Form 982 — affectionately called “The Tax Form from Hell” due to its byzantine complexity. Form 982 is the document you include with your Federal Form 1040 to claim the insolvency exemption. READ I Got a New 1099-C on an Old Mobile Home That Was Repossessed. – Donna

What does discharge of indebtedness mean on IRS Form 982?

Discharge of Indebtedness. The term discharge of indebtedness conveys forgiveness of, or release from, an obligation to repay. File Form 982 with your federal income tax return for a year a discharge of indebtedness is excluded from your income under section 108 (a).

Form 982 (Rev. March 2018) Department of the Treasury Internal Revenue Service Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) ▶ ▶ Attach this form to your income tax return.

Which is the latest version of Form 982?

No. 17066E Form 982 (Rev. 3-2018) f We last updated the Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) in February 2021, so this is the latest version of Form 982, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form 982 directly from TaxFormFinder.

How to reduce capital loss on Form 982?

Applied to reduce any net capital loss for the tax year of the discharge, including any capital loss 9 carryovers to the tax year of the discharge . . . . . . . . . . . . . . . . . . . 10a Applied to reduce the basis of nondepreciable and depreciable property if not reduced on line 5.

However, under certain circumstances described in section 108, you can exclude the amount of discharged indebtedness from your gross income. You must file Form 982 to report the exclusion and the reduction of certain tax attributes either dollar for dollar or 331/3 . cents per dollar (as explained later).

Do you have to file Form 982 for debt cancellation?

Typically, the taxpayer must report the amount of debt cancellation as income unless one of several exceptions applies. If one of these exceptions applies, the taxpayer must file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Determine if the forgiveness of your debt is related to a qualifying event.

How to enter Form 982 in TaxSlayer Pro?

To enter Form 982 in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select: To indicate that canceled debt being passed through on Form K-1 (Form 1065) is being excluded pursuant to IRC section 108 (1), from the Main Menu of the tax return (Form 1040) select:

When to file Form 982, Reduction of indebtedness?

If one of these exceptions applies, the taxpayer must file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Cancellation or forgiveness of a taxpayer’s indebtedness results in taxable income to the taxpayer. Determine if the forgiveness of your debt is related to a qualifying event.

What to check on Title 11 Form 982?

Check the box on line 1a if the discharge was made in a title 11 case (see Definitions on page 3) or the box on line 1b if the discharge occurred when you were insolvent (see Line 1b on page 3). Include on line 2 the amount of discharged nonbusiness debt that is excluded from gross income.

When to file Form 982 discharge of indebtedness?

Discharge of Indebtedness. The term discharge of indebtedness conveys forgiveness of, or release from, an obligation to repay. When To File. File Form 982 with your federal income tax return for a year a discharge of indebtedness is excluded from your income under section 108(a).

What to check on Federal Form 982 if you are insolvent?

If you are insolvent (and not in a title 11 case), you can elect to follow the insolvency rules by checking box 1b instead of box 1e and completing the form as discussed below under A nonbusiness debt. Follow these instructions if you do not have any of the tax attributes listed in Part II (other than a basis in nondepreciable property).

Do you have to complete all lines on Form 982?

Certain individuals may need to complete only a few lines on Form 982. For example, if you are completing this form because of a discharge of indebtedness on a personal loan (such as a car loan or credit card debt) or a loan for the purchase of your principal residence, follow the chart, later, to see which lines you need to complete.

When do I need to file Form 982 for a discharge?

Form 982, you will need to indicate the reason for the discharge within Part 1 General information and you will need to include an amount within Part II Reduction of Tax Attributes (accordingly to the reason) Then check Form 1040, look at Line 21 Other Income, should be 0. May 31, 2019 8:12 PM

What does form 982 do for cancelled debt?

Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) reports the amount of cancelled debt to excluded from taxable income. We’ll automatically generate Form 982 if your cancelled debt is due to: