1099-c issue...not sure what to do

[mweidner2782]

What is the name of your state? South Carolina

Hello,

I decided to settle a credit card this past year and now I am trying to figure out what to do with the 1099-c.

Im using turbo tax and not really seeing a easy way to set this up.

If I used a third party company to help me settle the debt and got on a payment plan with them how do I show that?

So to make it more clear...

1. I had 17,000 on cc debt.
2. I then found a company called American Liberty Financial to help negotiate the price.
3. We set up a pament plan.
4. They ended up settling with amex for $6,500.
5. I had to pay them for that as well as other fees which ended up totaling $11,000.
6. My 1099-c states that I had 11,395.58 cancelled.

So that is where im at now. Any help/advice would be great.

I thank you so much for your time.

Regards,
Matt Weidner

 

[LdiJ]

What is the name of your state? South Carolina

Hello,

I decided to settle a credit card this past year and now I am trying to figure out what to do with the 1099-c.

Im using turbo tax and not really seeing a easy way to set this up.

If I used a third party company to help me settle the debt and got on a payment plan with them how do I show that?

So to make it more clear...

1. I had 17,000 on cc debt.
2. I then found a company called American Liberty Financial to help negotiate the price.
3. We set up a pament plan.
4. They ended up settling with amex for $6,500.
5. I had to pay them for that as well as other fees which ended up totaling $11,000.
6. My 1099-c states that I had 11,395.58 cancelled.

So that is where im at now. Any help/advice would be great.

I thank you so much for your time.

Regards,
Matt Weidner

A 1099 C is taxable income to you, unless you were in bankcruptcy or were insolvent at the time that the debt was cancelled.

Insolvent means that your debts were greater than your assets.

You might want to consult with a tax pro on this one.