How do you file a 1099A after filing Chapter 7 Bankruptcy?

No. H&R Block is not correct. Have your taxes done by a CPA and they will guide you on how to avoid paying taxes on the 1099.

Block is staffed by folks who are not really trained by anybody except Block and they have other jobs most of the year, so they are really not tax professionals, at least most of them. In this case they are not correct. Debts that are DISCHARGED in a bankruptcy do not result in any tax liability. You need to attach an IRS form 982 to your return showing that this debt was discharged in a bankruptcy. You may also want to use a CPA as Mr. Praver recommended, at least this year.

HR Block is wrong. If the debt was cancelled due to bankruptcy - it is not taxable. Have your tax preparer fill out form 982, which tells the IRS that your debt was discharged due to bankruptcy.

I agree with the other answers.H&R Block may have been confused by the expiration of the Mortgage Deficiency Tax Relief Act of 2007 which was a Federal law that covered many non Bankruptcy situations where there was voluntary forgiveness of mortgage debt that was not covered by a short sale or a foreclosure.Mortgage debtors were relieved of any 1099 liability in those situations but the law expired at the end of 2012 and wasn't extended.Discharge in Bankruptcy is not, and never has been, "voluntary debt forgiveness" Otherwise all of our clients would have faced rather large tax bills over the years..Contact a CPA or a tax preparer who has experience with Bankruptcy discharges.

H & Block is incorrect n this instance. First a 1099A is not a forgiveness of debt income, it is merely a reporting of the sale of the property at the sheriff sale. The lender states that they got $65,000. Assumint that this was your primary residence, then on your tax return you woul d show the $65,000 - the purchase price at which you bought the property. If it is positive number, you can exclude the gain if it was your residence (time restrictions apply). If it was a loss - well no taxes are owed on a loss. In additon, you may receive a 1099-C (Cancellation of Indebtedness) for the difference between what you owed and the reported sale on the 1099-A. That is not taxable to you if the debt was discharged in a bankruptcy, but requires explanation to the IRS by attaching form 982 to your tax return. In addition, there was general relief that was provided to all homeowners, the Mortgage Forgiveness Debt Relief Act of 2007, which could be and probably is applicable to your situation. In any event, form 982 is easy to fill out and attach to the tax return. Unless you got something else unique, buy a copy of Turbo Tax and file. Good luck

H and R is wrong. During “tax season” we see this question asked over and over if you check on you will see many replies stating the same thing in essence. Most importantly, absent situations involving a reaffirmation in bankruptcy and later foreclosure on the same secured asset, you will OWE NO MONEY: IT IS NOT A TAXABLE EVENT. Provide the 1099 C to your tax preparer. The cancellation of debt is not a taxable event if the cancellation is due to discharge in bankruptcy (absent reaffirmation) If you received a discharge of the mortgage debt in your Chapter 7 bankruptcy , your personal liability for the debt is in fact discharged and you will not be taxed on the 1099 C. Your tax preparer will need to fill out form 982 which will tell the IRS that your obligation was discharged in bankruptcy. If you do not have one, you might seek from the IRS Form 982 and explain why it is not taxable income. Line 1(a) is a bankruptcy discharge, and line2 is the amount from the 1099. Thus, no taxes due! You might also go to H and R Block, ask to speak to the head person in charge and ask to receive some monies back! They wont ever return any monies if you don't ask..if not, at least you tried too. Good luck and I hope the attorneys answers herein relief the stress you might have felt when you read that notice. My clients already know that from my final letter provided to them. I would also check your credit report a couple months later and make sure no debt is being reported as "written off" instead of just showing discharge back in bankruptcy and no late payments since you filed ..if it shows anything untruthful, object to anything on all 3 reports until it is correct!