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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » IRS FORM 982- EXCLUSION FROM INCOME CREDIT CARD DEBT FORGIVEN IF INSOLVENT?

IRS FORM 982- EXCLUSION FROM INCOME CREDIT CARD DEBT FORGIVEN IF INSOLVENT?

My wife had $10,000 in credit card debt forgiven via settlement. It was her debt alone. We file jointly. I have a worksheet to determine insolvency. In adding up assets and liabilities, do I include just hers or must I also include mine? We have no joint assets except a checking account. We own no property. I own the car. Are the value of IRAs included in the assets or is it excluded? Thank you!

A welcomed response stated that we have to file married filing separately to only list my wife’s assets and liabilities to establish insolvency. I live in North Dakota that is NOT a community property state. Does this change the need to file MFS?

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2 Responses to "IRS FORM 982- EXCLUSION FROM INCOME CREDIT CARD DEBT FORGIVEN IF INSOLVENT?"

  1. the tax lady says:
    It’s her debt, but if she wants to do insolvency by herself, she has to file MFS from you.

    The full value of the IRAs *are* included.

  2. cheap polo says:
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