Taxes on Settled credit card debt beware..

[ShortyGirl]

What is the name of your state (only U.S. law)? PA
Hi all, Havent been on here for almost a year, but I came back on here to tell you, if you settle your credit card debt for a "lesser amount then the balance", be aware the "balance left" they "forgive" you on after you settle, IS taxable by the IRS as income in most cases (except bankrupcy and a few other reasons).
I was not told this when I settled in 2008, and now I got a 1099C form from the collection agency who sued me saying the amount they gave me is taxable as income.
(Also in my case, they added a larger amount than is true but I have no way to prove it).
To add fire to the fuel, I already sent our taxes in before I got the form from them, so now I have to correct it with the IRS.
Just trying to help yall from a future headache.What is the name of your state (only U.S. law)?

[Antigone*of*Greece]

Originally Posted by ShortyGirl

What is the name of your state (only U.S. law)? PA
Hi all, Havent been on here for almost a year, but I came back on here to tell you, if you settle your credit card debt for a "lesser amount then the balance", be aware the "balance left" they "forgive" you on after you settle, IS taxable by the IRS as income in most cases (except bankrupcy and a few other reasons).
I was not told this when I settled in 2008, and now I got a 1099C form from the collection agency who sued me saying the amount they gave me is taxable as income.
(Also in my case, they added a larger amount than is true but I have no way to prove it).
To add fire to the fuel, I already sent our taxes in before I got the form from them, so now I have to correct it with the IRS.
Just trying to help yall from a future headache.What is the name of your state (only U.S. law)?

... and what makes you think you shouldn't pay taxes on the full amount. You got full benefits.

Yall wouldn't have future headaches if yall didn't spend what yall didn't have.