Share post
member profile picture
Posts: 2
Credits: 0
[Donate]

If you are able to prove insolvency on your taxes are (since 1099C) is not included in the numbers - will you still receive any refund that is due to you?




Your tax refund is based on your tax filing. So, yes, if you deduct the 1099 as insolvent then the net impact should be that you have no tax impact and therefore receive the resulting refund you would have received it the 1099 didn't exist.

Sub: #1 posted on Fri, 01/07/2011 - 10:12

dantheman dantheman
Moderators Cum Industry Expert
(Posts: 860 | Credits: )

Check out this thread and see if it helps, http://www.debtconsolidationcare.com/settlement/about6433 6.html

You do not include the forgiven debt on your 1099c if you are insolvent. Do the worksheet http://www.irs.gov/pub/i rs-pdf/p4681.pdf
(worksheet is on page 6)
Do not include a canceled debt in income to the extent that you were insolvent immediately before the cancellation.

Sub: #2 posted on Fri, 01/07/2011 - 18:09

Kat1975 Kat1975

(Posts: 26 | Credits: )

Clarifying this, the 1099c IS the amount of your forgiven debt. But it is offset by the insolvency so you will not pay tax on the amount of the 1099.

Sub: #3 posted on Sat, 01/08/2011 - 10:39

dantheman dantheman
Moderators Cum Industry Expert
(Posts: 860 | Credits: )

Attachment
More information
  • Files must be less than 500 MB.
  • Allowed file types: txt pdf jpg jpeg png.


Page loaded in 1.036 seconds.