Tax 982 Form & Debt Settlement Question
Date: Wed, 08/18/2010 - 16:29
Hello, I have a question as to if I will be insolvent for my 2010 taxes.
- Last year I made about 11,000 and had a tax return of 900 for Fed. & 400 for state.
- This year I will make about 13,000/14,000
- I will have settled on 3 debts by the time the year is over.
- Debt of 2700.00 settled for 1700.00
- Debt of 900.00 settled for 200.00
- Debt of 3500.00 settled for 1700.00
- Total of forgiven debt = 3500.00
I am 19. I live with my parents. I am going to school and I work part time. I do not have a bank account. I do not have a car (it's under my dad's name.) I do not have any active credit cards but I do have about 15,000 in debt. (Made a lot of mistakes sadly) My parents pay my bills with their credit cards. Ex: I am under my dad's name for cell phone. My mom charges her CC for my clothes. I in turn pay my parents for whatever they charge on their CCs whether it's gas, cell, clothes, food.
When I file my 982 to prove insolvent will I qualify under my case? Will I still have to claim my clothes, jewelry, dvds, tv, computer as assets? Or would they be considered my parents stuff since I'm under they're roof and they pay for everything.
Can I still expect a state and federal tax return?
Thank you for any insight you can give
- Last year I made about 11,000 and had a tax return of 900 for Fed. & 400 for state.
- This year I will make about 13,000/14,000
- I will have settled on 3 debts by the time the year is over.
- Debt of 2700.00 settled for 1700.00
- Debt of 900.00 settled for 200.00
- Debt of 3500.00 settled for 1700.00
- Total of forgiven debt = 3500.00
I am 19. I live with my parents. I am going to school and I work part time. I do not have a bank account. I do not have a car (it's under my dad's name.) I do not have any active credit cards but I do have about 15,000 in debt. (Made a lot of mistakes sadly) My parents pay my bills with their credit cards. Ex: I am under my dad's name for cell phone. My mom charges her CC for my clothes. I in turn pay my parents for whatever they charge on their CCs whether it's gas, cell, clothes, food.
When I file my 982 to prove insolvent will I qualify under my case? Will I still have to claim my clothes, jewelry, dvds, tv, computer as assets? Or would they be considered my parents stuff since I'm under they're roof and they pay for everything.
Can I still expect a state and federal tax return?
Thank you for any insight you can give
Insolvency is simply your assets vs your liabilies on the next c
Insolvency is simply your assets vs your liabilies on the next calendar day following payment of your settlement. You complete a new form for each forgiven debt (settlement) and it is a very simple form. So, it is quite possible to be insolvent on the first settlement but solvent and owe taxes on the last.
