Going nuts, its tax time!

[Farmer Kitty]

I took ours into the accountant yesterday. Now it's wait and see.

 

[luvzmybabz]

Quote:
If a company forgives debt of anykind it is taxable to the person whose debt is forgiven. Another way that uncle sam gets his money one way or the other, the company would have had that amount as income since they don't uncle sam has to tax someone for it. I am not sure that the 1099-c can be used on tax act either I do taxes every year for friends and family, used to work as a manager for JH until there was a sexual harrassment issue, I walked on the busiest day of the year. And have never been happier dealing with IRS and people grump at me daily about their money ( most of these were getting well more then they paid in back) the people that tried to file frauduently.....................now I have my house in the country and all the animals and work only with friends and family ( someone I have worked with prior has to refer you) I do enough each year to keep my vices ( animals etc) going and do not have the headaches.

 

[HennysMom]

that makes no sense to me considering the company that "forgives' the debt claims that money as a write-off / loss on their taxes..

boy that just burns my butt a mile to know that.... ugh.

 

[ksacres]

I just did ours last week. Who knew you didn't have to pay someone 100+ very' dollars to fill in boxes!

 

[willowcol]

The way it was explained to me is that since you owed the money and didn't pay it back then its counted as income. It would make since if it were from credit card bills where you bought the items and didn't pay the bill, doesn't seem right if it was penalties and interest not actually things bought. So if you agreed to pay a lower ammount to close a credit card this year don't do your taxes before you get the 1099-c, I read where people tryed not to add it and 2 years later wow, penalties, interest, the got a big surprise. Seems as though that is one of the big things the IRS is checking to make sure is on you tax forms. You will also get one for loans, even homeloans. I am lucky it wasn't that much so it will take most of what we would have gotten back but we won't owe anymore.