Does receiving a 1099-C with code A mean I should check line 1a on Form 982 for bankruptcy discharge?

You're on the right track with your understanding. When you receive a 1099-C with Code A, it means the creditor is reporting debt canceled in bankruptcy. And yes, you should check line 1a on Form 982 which corresponds to debt discharged in a Title 11 case (bankruptcy). Companies are required to issue 1099-Cs to report canceled debt to both you and the IRS regardless of whether it's taxable or not. It's their reporting obligation. The Form 982 is where you, the taxpayer, explain why that canceled debt isn't included in your taxable income.

After dealing with a similar bankruptcy situation last year, I found myself completely overwhelmed trying to handle all the tax implications. I spent hours researching how to handle 1099-Cs with code A and Form 982 filing requirements, but kept finding conflicting information. I finally tried https://taxr.ai to help analyze my bankruptcy discharge and 1099-C documents. Their system actually identified that one of my creditors incorrectly coded a 1099-C that wasn't part of my bankruptcy discharge. They explained exactly how to fill out Form 982 line 1a for the legitimate bankruptcy discharges, and how to handle the incorrectly coded one differently.

Just wanted to follow up - I decided to try https://taxr.ai after my initial skepticism. I uploaded my bankruptcy discharge papers and five 1099-Cs I received. The system immediately identified that two of my 1099-Cs were actually coded incorrectly - they used Code A (bankruptcy) when the debts were actually settled before my bankruptcy filing. This saved me from incorrectly filling out Form 982. The system walked me through exactly which box to check on line 1 for each different 1099-C based on their actual cancellation reason, not just what was marked. Honestly wish I'd known about this last year when I first filed post-bankruptcy - might have saved me from the IRS notice I got questioning my reported income.

I had the exact same issue with 1099-Cs after bankruptcy. The worst part was trying to call the IRS to get clarification. I spent days just trying to get through - always disconnected after waiting for hours. I eventually found https://claimyr.com which got me through to an actual IRS agent in under 45 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c if you're curious. The agent confirmed that yes, Code A means bankruptcy discharge and requires checking line 1a on Form 982, but they also walked me through how to handle mixed situations where some debt was discharged in bankruptcy and other debt wasn't.

Well I'm eating my words right now. After being completely skeptical about Claimyr, I was desperate enough to try it because I had questions about multiple 1099-Cs with different codes. Got connected to an IRS rep in about 35 minutes yesterday. The agent confirmed exactly what people are saying here - Code A 1099-Cs should trigger checking line 1a on Form 982. She also explained that even though the debt is excluded from income under bankruptcy, it still reduces my tax attributes (whatever those are) which is why Form 982 is important. Without filing Form 982, the IRS computers might flag my return for underreporting income even though it's rightfully excluded. Not saying everyone will have the same experience, but getting actual IRS confirmation was worth it for me.

I went through Chapter 7 in 2023 and got like 8 different 1099-Cs. My understanding is that yes, if box 6 on the 1099-C shows Code A, that means the creditor is coding it as cancelled due to bankruptcy. And yes, when filing Form 982, you'd check line 1a for Title 11 bankruptcy. But here's the important thing my attorney told me: VERIFY that all debts on those 1099-Cs were actually included in your bankruptcy! Sometimes creditors make mistakes and code debts as bankruptcy cancellations when they weren't part of your bankruptcy case.

Did you recently file for bankruptcy? If not, that 1099-C with Code A might be wrong. I had a creditor send me a 1099-C with Code A even though my debt was settled through a debt management program, not bankruptcy. Had to call them to get a corrected 1099-C with the right code.

Yes to your question! If the 1099-C has Code A in Box 6, that means the creditor is reporting the debt was canceled in a bankruptcy. Line 1a on Form 982 corresponds to discharge of debt in a Title 11 case (which means bankruptcy). So check line 1a. As for why they issue the forms at all - it's because the IRS requires creditors to report ALL canceled debt over $600, regardless of whether it's taxable or not. The 1099-C doesn't determine taxability; it just reports the cancellation. You then determine if it's excludable on your tax return using Form 982.