credit card debt forgiveness
[mage lang="" source="flickr"]credit card debt forgiveness[/mage]
Credit card company sent IRS a “debt forgiveness” as their loss?/1099C?
So now we have to pay the IRS more money. But what was owed was actually interest that was owed, not actual income. Is there any way to get out of this based on that? Or are we just screwed? Just wondering before we talk to a tax advisor tomorrow.
we got one of those too, you’re screwed. thanks a lot us gov’t! of course, we didnt talk to a tax person, just did the logic in our heads and came to the conclusion that we’re screwed. Basically they say that its earned income for you because you no longer have to pay off that debt (like we were gonna do that anyway at this point in time) so you have to pay taxes on it. Sorry =( It was a bummer for us too. It says on the letter that the debt is forgiven, so its income, so you have to pay for it.
