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My Credit Union Sent me a 1099-C for Two Different Amounts. – Sabra

Written by Steve Rhode

“Dear Steve,

Credit Union charged off the amount of $2369 for a gap insurance loan that had a balance of $1639 but reported to IRS a charge off of $2574. IRS is going after me for not claiming it as income.

How can they have 2 different charge offs and get away with it?



Dear Sabra,

It’s a mystery.

The first point to consider is if you were insolvent at the time the debt was charged off. If so you could file an IRS Form 982 to avoid the tax due on that debt. See this post.

If you were not insolvent and still have to pay tax on the forgiven debt I would notify the IRS of the discrepancy. They have a process for dealing with such issues.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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