How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Chad Oberg Your Own Question

Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience:  10 + years of accounting and tax experience, financial statements and business planning
30052784
Type Your Tax Question Here...
Chad Oberg is online now
A new question is answered every 9 seconds

I JUST RECEIVED A 1099-C FROM BANK OF AMERICA ON A CREDIT CARD

Resolved Question:

I JUST RECEIVED A 1099-C FROM BANK OF AMERICA ON A CREDIT CARD DEBT THAT
BELONGED TO MY HUSBAND WHO DIED MAR 2007. I DON'T REMEMBER THIS DEBT BUT IT
COULDN'T HAVE BEEN MORE THAN $800.0. THEY SHOW CANCELLED DEBT OF $7795.00
REPORTED TO IRS ON 1099-C CHARGED OFF DEC 2009. AM I RESPONSIBLE FOR THIS?
WHAT HAPPENS IF I DONT SHOW IT TO THE ACCOUNTANT. I'M REALLY EMBRASSED.
Submitted: 4 years ago.
Category: Tax
Expert:  Chad Oberg replied 4 years ago.

Customer,

 

I am so sorry for your loss.

 

Please do not be embarrassed; I have seen so many of these this year. People are hurting in this economy and many have much larger balances than yours. Now, let's see how we can help you with this situation.

 

Your husband basically received forgiveness of debt for $7,795. Now it is very important to bring it to the accountants attention. This is especially true if the 1099 is in both you and your spouses name. If it was only in his name, most of the time the income would have been resolved on the estate tax return (if there was one). If there was not any estate tax return and the 1099-C was in his name only, you probably do not have to claim the income.

 

Also, see IRS Form 1040 Instructions page 91 for related instructions:

 

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

If you have any further questions, please do not hesitate to contact me.

 

Regards,

 

Chad



Edited by Chad Oberg on 2/3/2010 at 12:11 AM EST
Customer: replied 4 years ago.

THANK YOU FOR YOUR REPLY. HOWEVER I HAVE A FEW MORE QUESTIONS.

HOW DID $800.00 BALANCE TURN INTO $7795.00 IN 2 YRS? THIS ACCOUNT

WAS ONLY IN HIS NAME. THE 1099-C IS MADE OUT TO HIS NAME ESTATE. I'M

AFRAID MY ACCOUNT WILL WANT TO ADD IT TO MY TAXES THIS YEAR IF I SHOW

THIS TO HIM. HOW LONG DO CREDIT CARD COMPAINES HAVE TO KEEP TRYING TO DO THIS OR COLLECT?

Expert:  Chad Oberg replied 4 years ago.

Customer,

 

Your husband should not be on your return any longer. Therefore, if your name is not on the 1099 or your social security number, you should not have a problem. So, if you feel better not showing the accountant you can. If you receive a notice, you will need to write a letter to the taxing agency explaining the situation.

 

I have no way of telling how the balance went from $800 to $7,795. I understand your frustration. Credit card companies do not give up easily. However, if they issued a 1099, they are close. You may want to monitor your credit report to make sure there isn't any negative marks from this situation.

 

Regards,

 

Chad

Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience: 10 + years of accounting and tax experience, financial statements and business planning
Chad Oberg and other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.