longsally111
Member
What is the name of your state? South carolina
I have one question. To make a long story short, my husband lost his job right after I gave birth to my second child. I came off maternity leave after 2 weeks to work, I was NOT going to lose our home. My children needed food, clothing, etc. During this time, I called up the auto company on my van I had been paying on for 2.5 years (perfect payment history) and asked them to come get it. I could no longer afford the payments. I was not behind on it, I just needed to reduce our debt.
After much talking back and forth on the amount that was left, they sent me a letter stating that they would "notify the IRS, under the Revenue Reconcilliation Act of 1993, form 1099-C, unearned income, that this debt had been cancelled". They stated that this would create a tax liability for me. Can someone please explain to me what this is? I cannot find it on the internet.
Thank you
I have one question. To make a long story short, my husband lost his job right after I gave birth to my second child. I came off maternity leave after 2 weeks to work, I was NOT going to lose our home. My children needed food, clothing, etc. During this time, I called up the auto company on my van I had been paying on for 2.5 years (perfect payment history) and asked them to come get it. I could no longer afford the payments. I was not behind on it, I just needed to reduce our debt.
After much talking back and forth on the amount that was left, they sent me a letter stating that they would "notify the IRS, under the Revenue Reconcilliation Act of 1993, form 1099-C, unearned income, that this debt had been cancelled". They stated that this would create a tax liability for me. Can someone please explain to me what this is? I cannot find it on the internet.
Thank you