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Anyone out there doing their parents taxes and gotten a 1099-C for cancellation of debt and they are on Medicaid, then it is really, REALLY, important that you do a 1040 for them and ALSO a form 982. The 1099-C will count as income and could jeopardize their Medicaid status. By doing the 982 correctly, they can offset that 1099-C income as they should be insolvent (if they are on Medicaid). The 1099-C can come from credit card or other written-off debt that was from several years ago too - I think up to 14 years ago. Also if you do their taxes, remember to do a form 2848 for POA ability to do their taxes.

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OK the Question topic line was stuck @ 139 characters, really!

It should have read: Anyone out there doing their parents taxes?
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