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Debt Relief – Insolvency – Bankruptcy Information » Entries tagged with "figure"

Debt Settlement and the IRS – How to Figure Out If You’re Insolvent at the Time of Pay Out

When any financial institution settles a portion of your debt, then they issue a 1099-C. This 1099-C reflects the amount that has been settled. The IRS will consider the amount mentioned in 1099-C as taxable. This tax can only be avoided if you can prove insolvency at the time of settlement. In order to do this you will have to follow a few steps. First you must compile all your 1099-C and get the total amount that has been settled or cancelled by your creditors. Let’s say you had a debt of $ 10,000 and creditors settled it for $ 5000. At the time of settlement your creditor will issue a 1099-C with $ 5000 mentioned on it. As per rules, any settlement amount above $ 600 has to be informed … Read entire article »

Filed under: Bankruptcy Help, Insolvency

i settled my credit card debt this year and i am trying to figure out if i need to include it on my taxes.?

i am unsure if my debts are Insolvency as you call it. i settled my cards for 20,0000 and i make 26,000 but the orginal debt was up to 30,000. please advise … Read entire article »

Filed under: Insolvency

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