Is canceled debt shown as an income?
Date: Thu, 07/20/2006 - 12:49
If you make agreement with credit card companies to make settlement and they agree, like you owe 10.000.00 and they settle for 3800.00 do you have to claim the difference as income? Help desperate in North Carolina. This was due to illness and being diabled
Sherry, this works as per the state laws in your state. In gener
Sherry, this works as per the state laws in your state. In general, the answer to your question is 'yes'. The cancelled debt amount will be shown in as an income in form 1099. Do you have a tax attorney who can confirm this information for you? He can offer you the right guidance in this case as per the applicable laws in your state.
