02-02-2014 03:53 PM
How do I deduct a Non Business Bad Debt on my 2013 Income Tax Return? I am using Deluxe version online and I don't think it will work for this because i cant find anything on this topic.
02-17-2014 03:07 PM
Welcome to the Community. I was able to track down some feedback through our digital product team. We do support this scenario – Just use the stock sales topic and select the transaction type “nonbusiness bad debt”. Then, follow the prompts.
The interview asks for the information and the program attaches it to the return automatically.
I hope this helps.
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10-16-2014 01:32 AM
02-25-2015 02:44 PM
A bad debt cannot be deducted until it is totally worthless.
The following information is needed when reporting the debt:
Enter the debtor's name and "bad debt statement attached" in column (a), the amount of the bad debt in column (e), and -0- in column (d).
1. The statement should include a description of the debt, including amount and due date. 2. Name of the debtor. 3. Details of any business or family relationship to the taxpayer. 4. Efforts to collect the debt. 5. Why the taxpayer decided the debt was worthless.
Hope this is helpful.
Sr. Tax Consultant
02-25-2015 09:29 PM
So we have to do this manually by opening the 8949 form from the Forms menu? I was expecting some entry in the interview section under 'Stock sales'. If we manually edit the form, there is a warning that says that 'E-Filing' capability will be disabled.
04-02-2015 12:03 AM
This is exactly the problem I am having. Chat did not help at all (I'm not sure it does, except for reading the same directions I see on the screen.) I am using 2014 HR Block Premium. I do not see any listing under "Sale of Stocks & other assets" that allows for non business bad debt. As with the other poster, any attempt to add another Form 8949 gives the bold message that efile is disabled, and the numbers will not carry over to the other forms. In other words, just do it all yourself and file by paper. Any help on this? I have to have a separate 8949 because I have other short term sales that do have 1099 reporting, and I can only check one block. IRS Pub 550 says I must have a separate 8949 in that case.