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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I got a 1099C for #22,000 in unsecured credit card debt that

Customer Question

I got a 1099C for #22,000 in unsecured credit card debt that I stopped paying on 6 years ago. . I am suppose to declare it as income for 2015, which means a tax bill for an extra 6500. My I have no savings, 401Ks, or any other asset besides the equity in my house. This however does exceed 22,000, which means, as I understand it, that I can't be considered "insolvent". However, the only way I can pay the 6500 is to sell or refinance my house. What should I do?
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Submitted: 11 months ago.
Category: Tax
Expert:  emc011075 replied 11 months ago.

If you cannot claim insolvency you will have to include it in your taxable income. You can request installment agreement. As long as you filed all required returns and the debt is less than 50K you may be instantly approved.

You can spread the payments over up to 5 years or about $120 per month.

Expert:  emc011075 replied 11 months ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?