Credit card debt and 1099c forms. Once you file taxes will your credit card debt with company be gone?

I recieved a 1099c form from a credit card company for a settled credit card debt. The amount is for ,000. I only make ,000 per year. Will I end up owing on taxes due to being in a different tax bracket?Will the debt finally be gone?

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Sunday, April 19th, 2009 Consumer Debt

2 Comments to Credit card debt and 1099c forms. Once you file taxes will your credit card debt with company be gone?

  1. Yes, you owe taxes on the $10,000 settled debt. What the government means that you had a windfall by not paying the $10,000 settled debt.

  2. peasticker on April 19th, 2009
  3. Sounds like your debt to the credit card is gone, but you're going to pay tax on the forgiven debt.

    use Turbo Tax for free and see where you are. It will ask you to put in the 1099c information.

    Unless you paid some estimated taxes, you might also get a penalty for not paying enough taxes. but, try turbo tax.

    The 1099C should have a "taxible" amount field on it.

  4. boilerette72 on April 19th, 2009

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