Amount reported on 1099C after debt settlement
Date: Fri, 03/12/2010 - 10:29
What amount is reported on the 1099c? The actual amount you charged (not including interest)?
or the total amount you owed the creditor?
Less the settlement amount, of course.....
or the total amount you owed the creditor?
Less the settlement amount, of course.....
The creditor would issue the 1099 c form on the forgiven amount
The creditor would issue the 1099 c form on the forgiven amount of the debt.
For e.g. If you owe the creditor $10k and have settled the account for say $6k, then $4k has been the amount written off by the creditor, and you would be charged income tax on the saved amount, less $600.
Hope it clarifies.
Thanks. I'll print that and put it in my tax file for 2011 whe
Thanks. I'll print that and put it in my tax file for 2011 when my settlements "hit".