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

Dealing With Taxes on Your Settled Debts

One of the biggest drawbacks of settling debts is dealing with the tax implications of having your debt cancelled. The IRS requires you to include cancelled debt as taxable income on your tax return and requires businesses to report cancelled debts over $ 600. If your creditor cancels at least $ 600 of debt, the IRS will know about it. They’ll be expecting you to claim this as income on your taxes. You could face an audit if you don’t include the cancelled debt on your tax return. Increasing your taxable income by adding in cancelled debt can decrease your tax refund – that’s if you still get a tax refund after increasing the amount of taxes you’re liable for. The worst-case scenario is that you end up with a tax … Read entire article »

Filed under: 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

I settled a debt with a credit card company and have received a 1099C. Is there a way to show I am insolvent?

I became divorced and was unable to pay even the minimum amounts. I used a debt settlement company who told me I could show insolvency and not have to claim the 5,000 as income. But I don’t know how to proceed. … Read entire article »

Filed under: Insolvency

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