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Pioneer
Posts: 1
Registered: ‎02-02-2014

Non Business Bad Debt

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.

afm
Pioneer
Posts: 2
Registered: ‎02-14-2014

Re: Non Business Bad Debt

I have some issue. any body out there can answer?

afm
Pioneer
Posts: 2
Registered: ‎02-14-2014

Re: Non Business Bad Debt

Add: When you have non-business bad debt, it requires you to attach information of bad debt to e-file. How would you do that?

Community Manager
Posts: 1,850
Registered: ‎12-17-2012

Re: Non Business Bad Debt

afm,

 

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.

 

JerryG

Associate (Pioneer)
Posts: 1
Registered: ‎10-16-2014

Re: Non Business Bad Debt

I'd like to use At Home 2012 Premium to amend my 2012 return to report a worthless nonbusiness bad debt. I've launched it on my old return and tried. However, I can't find anything in the 'investments' area that lets me choose "nonbusiness bad debt" as a transaction type. I've tried following a few options that imply bond/debt-instrument - but it's definitely not prompting for the sorts of "bad debt statement" information that IRS publication 550 implies must be attached to form 8949. Can you be more specific about the steps to trigger this option? (Also concerning: non of the FAQ/tab-help/help-center links or buttons currently open any other info - they're no-ops.)
Pioneer
Posts: 2
Registered: ‎02-25-2015

Re: Non Business Bad Debt

I am not seeing any 'Debt' related options in the list of items listed under 'Special Type'.  Can you tell us the exact steps to arrive at the 'Bad Debt' item?

 

Associate (Neighbor)
Posts: 586
Registered: ‎09-04-2014

Re: Non Business Bad Debt

Non business bad debts are reported on form 8949 As a short term capital loss.
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.
Pioneer
Posts: 2
Registered: ‎02-25-2015

Re: Non Business Bad Debt

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.

Pioneer
Posts: 1
Registered: ‎04-01-2015

Re: Non Business Bad Debt

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.