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Filling tax return after bankruptcy

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    Question Filling tax return after bankruptcy

    Does anyone know how a bankruptcy effects a tax return? I was discharged in June 2009 (Chapter 7). There is a time to file taxes what to expect? Will all the "canceled debts" be considered income?
    Please, anybody who has the experience, help me to get prepared! Thank you.

    #2
    Cancelled debts are not income when they are discharged in BK. If you do get any 1099-C forms for the debt, then you need to fill out form 982. Mark box 1a and put the amounts from the 1099 forms in line 2. DO NOT put the debt amount in form 1040 line 21, where a cancelled debt would normally go.

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      #3
      See JoeBankrupt's posting above as to the discharged debt. Also know that no bankruptcy expenses are tax deductable (i.e., filing fees, attorney fee, etc., etc.).
      _________________________________________
      Filed 5 Year Chapter 13: April 2002
      Early Buy-Out: April 2006
      Discharge: August 2006

      "A credit card is a snake in your pocket"

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        #4
        Thank you so much, what a relief!

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