2006-11-13 13:29:08 · 6 answers · asked by Mad Mike 1 in Business & Finance ➔ Taxes ➔ United States
If you settled with the credit card company for a lower amount then what you owed they should send you a 1099C for the difference between what you owed and what you paid. This amount is income and is included on Line 21, Form 1040.
2006-11-13 13:46:29 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
If the debt was cancelled by the creditor and is $600 or more, you should receive a 1099-C. The debt cancellation has then been reported to the IRS, and you need to report it as income. For smaller amounts, you're supposed to but there isn't the tracking.
2006-11-13 13:48:51 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Section108 covers forgiveness of debt income. Generally it is income to you unless you are insolvent before and after the write-off.
2006-11-13 22:48:44 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋
That interest is not tax deductible. If you owe a lot and own a home, take out a home owners line of credit and pay off the credit cards. The interest on the line of credit on your home is deductible.
2006-11-13 13:31:02 · answer #4 · answered by brucenjacobs 4 · 0⤊ 2⤋
Could you be a little more specific in your question? I have no clue what you are talking about.
2006-11-13 13:35:32 · answer #5 · answered by Steve 6 · 0⤊ 1⤋
I don't because you pay them money and not the other way around
2006-11-13 13:30:32 · answer #6 · answered by osunumberonefan 5 · 0⤊ 2⤋