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 Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 17228
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

I settled a credit card debt in 2011. However, the credit

This answer was rated:

I settled a credit card debt in 2011. However, the credit card company did not send me a 1099-c to report the cancelled debt as income. As a matter of fact, the company said they had three years to send me my 1099-c and that they were not sure when they would send my 1099-c. Should I include my estimation of cancelled debt to this year's income taxes or should I wait until I receive a 1099-c in the future and then file?

Wallstreet Esq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

Wallstreet Esq. :

You should wait for the actual 1099-c as the IRS will not have any evidence of the debt, until the 1099 is actually issued,

Wallstreet Esq. :

Also, be aware,

Wallstreet Esq. :

If you receive a Form 1099-C but the creditor is continuing to try to collect the debt then the debt has not been cancelled and you do not have taxable cancellation of debt income.

Customer:

Citibank told me that the account has been settled and the company they hired to collect the debt has also told me that the debt was settled. So, I am not concerned about the continuation of the collection process. However, does this mean that when I finally get a 1099-c, sometime in the next three years, I will need to go back and file an amended 2011 tax return?

Wallstreet Esq. :

no, it would b canceld as of the date of the 1099c

Wallstreet Esq. :

so you would declare it at that time

Customer:

Makes sense. Thanks for you time and expertise.

Wallstreet Esq. and other Tax Specialists are ready to help you

Related Tax Questions