Have a Tax Question? Ask a Tax Expert
Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.
This is a ROUGH estimate. If you had to report all the $44900 as income then you would be looking at a $12900 tax liability.
You may be able to exclude that $44900 from income though if this was your main home or you could exclude some based on possible insolvency.
I did the estimate on single no dependents with standard deduction.
If this was your main home for at least 2 years out of the 5 years before this event, you use form 982 and can exclude this 1099C form your income.
If you miss that option then you are insolvent if your debts are more than your assets (debts include this 1099C amount). Form 982 is used to show that as well.
You may not have to add that $44900 to your income.
Please let me know if you need more information.If not then scroll up to see the STARS to rate so I am credited.
Then the form 982 is what you will need when you file for the year this happens.
I hope this has been useful.
A positive 5 star rating is appreciated so I am credited for assisting.
I will check for any update again..................one moment
The Act initially covered a three-year period between 2007 and 2010, but was extended four times, to 2012, 2013, 2014 and then to 2016. This can also apply to debt that is discharged in 2017 provided that there was a written agreement entered into in 2016. SO for 2017 it appears fine but with all the continued 1099Cs it would not be unusual for this to be extended further.
You are most welcome.A positive 5 star rating is appreciated so I am credited for assisting.