Latest Posts
Home > Tag Archives: 1099-C

Tag Archives: 1099-C

Don’t Overlook the Insolvency Exemption for 1099-C Cancelation of Debt Income

taxform

It’s that time of year again, when people are receiving 1099-Cs for debts forgiven or canceled during 2013. Perhaps you were in a debt settlement program with successful results, and a lot of debt was forgiven. Or it may be that your creditor decided to formally cancel an old delinquent account to close out their records. You might have taken ... Read More »

Fannie Mae Wants to Settle Our Mortgage Debt for Less Than We Owe. – Dorrie

gift

“Dear Steve, Reduced payoff and the mortgage is in good standing We have a house mortgage with SLM (Fannie Mae). We have been getting letters from them stating that we are eligible for a reduced payoff if we refinance with another Mortgage Company. Now mind you we are current and always been current (direct payment from our checking account). First ... Read More »

Why is My Ex-Husband Not Responsible for This 1099-C From the Repossession?

hiding-1

“Dear Steve, Divorced single mom of three. The IRS held my last years refund of $9000.00. I finally asked them why and they said I failed to file a 1099-C from a 2006 repossesion and the vehicle was awarded to my ex in the divorce. The amount on the 1099-c is 10,300.00. I can’t afford to amend the return and ... Read More »

IRS Form 982 is Your Friend if You Got a 1099-C

IRS Form 982

Just because you got a 1099-C form from forgiven debt is not a reason to immediately panic and think you are automatically going to owe a lot of taxes on the forgiven debt. In the debt world a point of contention for me is the chronic misinformation about forgiven debt from debt settlement or a debt determined to be uncollectible. ... Read More »

I Got a New 1099-C on an Old Mobile Home That Was Repossessed. – Donna

1099C

“Dear Steve, Purchased a mobile home in 1996 with a mortgaged amount of 47000. Mobile home repossessed in 2003. My husband and I separated in May 2002. He refused to help pay any debt (mortgage, credit cards, etc). I immediately called the mortgage company to ask for help. They refused. I paid the note until August because by then I ... Read More »

My Wife and I Divorced But We Both Got a 1099-C For an Old Debt. What Now? – Steven

IRS

“Dear Jim, Vehicle debt was in mine and my wife’s name. Divorced in 2009, vehicle repossessed in 2009. We both received a 1099-C for the full amount in 2013. We cannot file a joint 1099, as we are divorced. How is this handled? Do we both pay taxes on the full amount or should it be split? Would this be ... Read More »

S Corp Line of Credit Backed by SBA Resulted in 1099-C From Chase. – Amanda

process

“Dear Jim, This is apparently yet another 1099C question :) For my S-corp business, I had a line of credit with a bank that changed loan terms after three years into a fixed loan. This loan was backed by SBA. I was unable to pay the new terms (and didnt actually understand that it was going to change) and tried ... Read More »

Payday Lender is Threatening Me With a 1099-C IRS Form. – Julia

1099C

“Dear Paula, i recived a 1099-c form with a cover letter sayng they will report deffault paydayloan as ordinary incom and that they officialy had forwarded the 1099-c form to the irs and it tells mea settlement agrement i called them and the guy told me if i didnt want the irs to get the 1099-c form to pay the ... Read More »

USAA Sent Me a 1099-C. Will This Help My Credit? – Andy

1099C

“Dear Steve, I had a credit card with USAA. I didn’t pay it and they cancelled the debt. It was for 5800 dollars. I was sent a form 1099-c and it drastically reduced my tax return. Will a cancellation of debt have any sort of positive effect on my credit? Andy” Don’t miss our free Get Out of Debt – ... Read More »

I Got a 1099-C and My CPA Says I Have to Pay Taxes On It

1099C

“Dear Steve, I’m confused now. I just had 1099-c sent that canceled out 51,000.00 of debt (30,000.00) from one creditor who never even called me, or sent nasty emails. The rest was the balance from other cards I settled for much lesser. I just went to my cpa and found out I owe 19,000.00 in taxes to the irs for ... Read More »

I Got a 1099 for a Debt Care One Was Settling for Me. – Ilene

1099C

“Dear Steve, I recieved a 1099 C from a bank credit card that I purchased in 2008. I lost my job and could not pay it until 2010 and I put the card on Care One which is a debt settlement service. I lost my job again in 2010 after paying to care one for a full year. They turned ... Read More »

Can a Debt Collector Send a 1099-C on a Debt That Charged Off 5 Years Ago? – Regina

Help - Red Button

“Dear Steve, I defaulted on a credit card account in 2005. I was in a really bad situation. I didn’t even have enough money to eat, let alone pay this bill. I got calls about it for about a year. Then nothing. Occasionally I would get a letter or phone call, but that was it. Today I got a call ... Read More »

Capital One Sued Me and Lost But Issued Me a 1099 and Now I Have to Pay the IRS. – Paul

IRS

“Dear Jim, Capital one sued me on a debt and it was dismissed without prejudice , they didn’t show up. about 7 months later they sued me again. this time i hired a lawyer and it was dismissed with prejudice. they can’t sue me again..yay. now almost a year later. i get a letter from IRS saying i owe back ... Read More »

We Got a 1099-C Five Years After We Lost Our House. – Eva

justball-144x125

“Dear Steve, We are in a situation out of our control. We had a forclosure do to the drop in market. We tried to short sale only to be denied after 6 months by the lender. There was a 2nd mortgage on the property. This whole process took place in 2005. Then in 2007 the 2nd wrote a cancellation of ... Read More »

How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598

Screen Shot 2012-06-04 at 9.33.02 AM

It seems more and more people are getting tax form 1099-C issued now for the forgiveness of old debt from as long as twenty years ago. That’s a problem for consumers. This old debt is sometimes called “zombie debt” because it appears to come back from the dead. The first thing you should do is not panic. There is a ... Read More »