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Form 982 for Austin Texas: What You Should Know

Therefore, if you have any interest includable from “discharge of indebtedness” in your income, the interest should come out from your income. The interest must be included.  “Discharge of indebtedness” means the bankruptcy discharge of all liabilities due to a judgment issued against you by a court of competent jurisdiction. Discharge of Debt is defined as the actual or constructive waiver of all or any part of all liabilities which you have under a contract or agreement arising as a result of a bankruptcy or a judgment. The amount that could discharge these liabilities depends on a number of factors, including: The nature of the contract or agreement or the amount of the debt. The timing (length, frequency) of the payments. The nature of your employment. The total amount of your liabilities. Example 1: A taxpayer files an 11/20/2011 and 11/20/2012 Form 982. The 12/10/2011 Form 982 provides a total exclusion of 11,800 (20,500 in taxable income).

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