1099-c

Date: Fri, 03/26/2010 - 04:37

Submitted by anonymous
on Fri, 03/26/2010 - 04:37

Posts: 202330 Credits: [Donate]

Total Replies: 4

My wife received a 1099-c for credit card debt that was written off last year. If she fills out the insolvency form and we file jointly, do I have to include all my assets? The cards were in her name only. If I have to declare my assets, can I also show what debt I had?

Well as far as my knowledge is concerned, you need to file insol

Well as far as my knowledge is concerned, you need to file insolvency with your tax return and you'll have to fill out the IRS Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness).

You may send an itemized statement showing your insolvency to the IRS. Keep in mind that IRS forgives cancelled debts as income but to the amount of insolvency only. Hope someone more knowledgeable will be soon around to help.

lrhall41

Submitted by Chris Samuels on Fri, 03/26/2010 - 07:33

( Posts: 174 | Credits: )

If you do end up paying taxes on this I believe you can file inj

If you do end up paying taxes on this I believe you can file injured spouse, which will get you half of it back. It is used for those who had to pay something out of their taxes for a spouse when it happened prior to the marriage.