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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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If I settled some debt for half of what I owed do I have to

Customer Question

If I settled some debt for half of what I owed do I have to claim that. Settled to credit cards for half of what I owed, do I have to show that?
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thanks you for using Just Answer. If you were released from your obligation to pay the full value of your credit card debt the amount released from your obligation to pay is income to you for federal income tax purpose. The credit card company will issue you IRS Form 1099-C with the amount canceled. This amount must be report as Other Income on your federal tax return.
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<br />If you were insolvent at the time of being discharge from your credit card debt you can have the amount from the Form 1099-C waived. To read more about canceled debts go to <a href="" target="_blank"></a> .
Customer: replied 8 years ago.
I never got a 1099-c form from either of the credit card companies. What should I do?