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Insolvency Calculator for IRS Form 982 Available, Updated for 2016!

If you settled a debt in 2016 (or prior years) and had more than $600 forgiven by a creditor, you will be receiving a 1099-C for “Cancellation of Debt Income.” That “income” has to be treated as ordinary income like your paycheck, unless you have an exemption for “insolvency.” In other words, if your net worth was negative at the time the debt was forgiven, then you can offset...