Comments on: Cancellation of Debt May be Taxable Income

By: Deidre

Deidre — Fri, 12 Mar 2010 16:50:24 +0000

COD is well like money you have gotten thru out the year or years like a job. You used the credit card to buy items or food or gifts or whatever you have used it for. You didnt return those things and have that taken off your bill did you? So since you settled out for a lower amount that that you did not pay for is kinda like getting things for free and we all know that does not happen so now you pay taxes on the money you did not pay back so now you pay taxes on that “income”

By: Evan

Evan — Thu, 04 Mar 2010 13:58:07 +0000

Well Lynn, I don’t know your particular situation so I can’t really comment.

By: lynn

lynn — Thu, 04 Mar 2010 04:50:08 +0000

so what are they saying I will owe all this money at the end of the year

By: Writing the IRS in Response to Increase in Income due to 1099-C – Five Rules when Replying to the IRS | My Journey to Millions

Tue, 21 Jul 2009 04:43:13 +0000

[...] feed for updates on this topic.Powered by WP Greet BoxAs I previously posted about, I learned that, Cancellation of Debt is Taxable Income, when my brother received notice that a creditor he had settled with 2 years ago filed a 1099-C for [...]

By: human resources

human resources — Tue, 14 Jul 2009 23:04:16 +0000

That is news to me! I haven’t had a lot of experience with debt but I have a boyfriend who does and is looking to settle or excuse it. Good to know! Basically the IRS doesn’t want you to be ‘off the hook’ of your debt. That’s what I’m getting from this.

By: Northern Camping

Northern Camping — Thu, 09 Jul 2009 02:39:43 +0000

I've always thought that it was a little screwy to have to pay taxes on a canceled debt.

Few people are actually aware of this and get a big surprise come tax time! My friend was bragging about how he got a $7000 credit card debt excuse by MBNA and was complaining come tax time that he had to cough up over $1700 in taxes!