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Personal Finance and Investing

(4,533 posts)

7. You got purchases you did not pay for, thats income

Wed Dec 27, 2017, 01:23 AM

Dec 2017

There are some exceptions though. Search for debt cancellation exceptions. IRS probably has a publication.

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Question about taxes and debt settlement. [View all] forgotmylogin Dec 2017 OP

The amount of a forgiven debt is taxed as income. The Velveteen Ocelot Dec 2017 #1

Unless Your Name Is Trump SeaDoo77 Dec 2017 #14

It would not surprise me, I have no personal knowledge Angry Dragon Dec 2017 #2

Yes, forgiven credit card debt counts as income to you. PoliticAverse Dec 2017 #3

Topic Number: 431 - Canceled Debt Is It Taxable or Not? elleng Dec 2017 #4

The $640.00 is consdered income on your tax returns... cbreezen Dec 2017 #5

On what basis do you say, elleng Dec 2017 #6

It was actually $5000-something in forgiveness. forgotmylogin Dec 2017 #10

Did you get a 1099 from the entity who forgave the debt? nt cbreezen Dec 2017 #11

No. forgotmylogin Dec 2017 #12

You should have recieved one. cbreezen Dec 2017 #13

You got purchases you did not pay for, thats income Cicada Dec 2017 #7

Keep in mind that the $640 will be taxed at your marginal PoindexterOglethorpe Dec 2017 #8

No, the $640 is the amount of tax owed. A HERETIC I AM Dec 2017 #18

Thanks for the responses! I figured as much. forgotmylogin Dec 2017 #9

May I ask the name of the debt consolidation / settlement company? progree Dec 2017 #15

Sure, I know are a lot of them. forgotmylogin Dec 2017 #16

Thanks! progree Dec 2017 #17