Have a Tax Question? Ask a Tax Expert
Hi my name is Mark. I will be happy to help you with your questions. Did you receive a 1099-C for cancellation of debt income is 2010?
What type of bankruptcy did you file?
Did you have a liability on your 2010 return? Did the IRS send you a notice that they were adjusting your return? I am assuming that the 2010 tax liability was not included in your bankruptcy.
Ok, you tax liability would depend on your Adjusted gross income (wages, interest, dividends exc. less any deductions). You would also have deductions for your personal exemptions and either a standard deduction or itemized deduction. Do you know approximate how much income you had in 2010?
If your income is only $50,000 I do not see where the 20,000 tax liability is coming from. With only $50,000 income $20,000 seems high even if you consider penalties and interest. Were you self employed in 2010?
Based on $50,000 of income your tax liability for the year should not be $20,000. When you have more information, I can review your situation in detail.
I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.
Please let me know if you have any questions or need clarification. I am happy to help