tax form

Insolvency Calculator for IRS Form 982 Now Available! Only $29!

In December 17, 2013
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ZipDebt.com proudly announces the launch of our new INSOLVENCY CALCULATOR, designed to help taxpayers and professional tax preparers determine taxable income associated with 1099-C “cancelation of debt income.”

At the super-low price of $29, this Excel based calculator will help you save HOURS of time in completing “the tax form from hell” (Form 982). You can buy it right now, download immediately, and get to work on your Form 982 within minutes.

Click Here to Buy the Insolvency Calculator for Instant Download

Every year when tax season rolls around, I receive numerous questions from anxious taxpayers who have received 1099-C forms for debts settled the prior year. People want to know if they will have to pay taxes on the forgiven debt, or how to determine whether the “insolvency exemption” will apply to their specific situation. I wrote a blog post several years ago on the subject of “Debt Settlement, Insolvency, and Income Taxes,” but there still seems to be no end to the questions people have on how to actually perform the calculations needed to determine insolvency.

That’s mainly because the IRS instructions for Form 982 read like they were written by a CPA with a MBA from Harvard and a mission to confuse as many people as possible! Even professionals are frequently stumped on questions about calculating insolvency, figuring out the exemption, and then filling in the rest of the form correctly.

Tax preparation software is of little help in dealing with Form 982. For example, what if you have received more than one 1099-C? There is simply no software out there that is built to handle that type of situation.

Due to the difficulty in understanding how to calculate insolvency and how to fill in Form 982 correctly, every year taxpayers leave millions of dollars on the table by simply ignoring the insolvency exclusion and then paying taxes on the canceled debts, even when they would have qualified for an exemption. Or worse, they ignore the Form 1099-C entirely, don’t claim the income, and then get audited for underreporting!

The IRS instructions for Form 982 indicate that approximately 11 hours of time should be allotted for this one form!!!

If you are preparing your own taxes and need help with handling a 1099-C, YOU NEED THIS CALCULATOR!

If you are a professional tax preparer, you already know what a headache it is to calculate insolvency and reduction of tax attributes. Here is the calculator you’ve been waiting for!

Click Here to Buy the Insolvency Calculator for Instant Download

Product Features

  • Easy to use calculator in Excel spreadsheet format (requires Excel 97 or later version)
  • Quick Start Guide will have you up and running in minutes!
  • No need to understand formulas, just input your data and the results are calculated for you automatically!
  • Detailed 38-page User Manual, with line-by-line instructions
  • Includes support for multiple settlements, multiple 1099-Cs, expandable as needed
  • Also covers cancelation of mortgage debt
  • Detailed extensive examples provided for different tax scenarios
  • IRS Form 982 and Publication 4681 included for reference
  • Includes detailed information on how to calculate insolvency, full or partial
  • Includes calculator for determining what to show in Part II of Form 982 (Reduction of Tax Attributes)
  • Shows total taxable income (if any) and total reduction of tax attributes
  • Fill in Form 982 quickly and easily with help from this amazing calculator

Click Here to Buy the Insolvency Calculator for Instant Download

6 Comments

  1. does this form 982 refer to people who have gone chapter 7?

    • Peg, no it doesn’t. Someone who has filed Chapter 7 bankruptcy should not need to file Form 982 to declare insolvency, since normally any tax liability is discharged along with the debt itself via the bankruptcy process.

  2. Great article. Thanks for the info, you made it easy to understand. BTW, if anyone needs to fill out a form 982, I found a blank form here http://goo.gl/yT7TSP. This site PDFfiller also has some tutorials on how to fill it out and a few related tax forms that you might find useful.

  3. I was able to review the calculator and, as a tax professional, I can say that it is well worth the money. I will be referring my clients here to help them determine insolvency. The instructions for the form are worth $29 by themselves. I wish I’d had this years ago!

    For a tax pro’s perspective on cancelled debt, check out my blog post on the subject:

    http://supertaxgenius.blogspot.com/2012/10/cancelled-debt-and-insolvency.html

  4. Charles – I purchased your calculator and it worked great! I had read all kinds of things on different Debt Settlement Forums and I had a little bit of an idea on what to do, but your program made it easy.

    We did our taxes on-line with a large tax filing company and we were able to fill in the numbers and they matched the ones from your program exactly. We should be in good shape if we get audited.

    Thank you for all your knowledge on debt settlement and for the programs you provide. I would highly recommend your calculator to anyone doing Debt Settlement. The comfort of knowing that we’ve correctly filed with the IRS is well worth the 29 bucks.

    • Ron, thanks for the great feedback! I’m glad the Insolvency Calculator was helpful for you. Anyone who is wrestling with Form 982 will find it $29 well spent. :-)

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