I settled some credit card debt in 2008 and received 1099-c's for the forgiven debt. I have to claim this as income...unless I can show that I was insolvent. I was insolvent and I looked up form 982 but I cannot find where I record that on form 1040 as non-taxable income. Do I just leave it off altogether and send in form 982 with the 1040? It seems like I should have to list all of this forgiven debt as income and also as non-taxable income to zero it out. I also plan on sending in my list of assets vs liabilities with my forms.

Anybody know how to do this properly???

Thanks so much