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I have a wage garnishment for a loan I haven't paid back. Then I received a 982 form from the creditor, that I have to file that loan amount as income. Supposley they wrote my debt off. I'm confused as why!? Should my wages still get garnished.. I'm paying for it and I got the form! I have to pay taxes on the I'm my opinion I shouldn't got the form. The creditor I have the wage garnishment with, it not answering any of my calls. Can somebody please help?

This is tricky and i wouldn't want to misguide you.

I'm just quoting the extract I got from Steve Rhode's blog.

In most cases I’ve see, the majority of people with a 1099-C were insolvent or mostly insolvent when their debt was forgiven. They have plenty of other obligations that weigh them down.
By filling out IRS Form 982 they are able to not have to pay any income tax due on the forgiven debt.
And as the example above shows, they only have to pay income on the forgiven debt above the point they become solvent, meaning their assets are more than their liabilities.

Sub: #1 posted on Tue, 05/02/2017 - 00:09

ditchdebt ditchdebt

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