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If my girlfriend fills out form 982, debt forgiveness for…

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If my girlfriend fills out...
If my girlfriend fills out form 982 , debt forgiveness for $19,000, does she still need to file a form 1040. Her total income only comes from Social Security Disability of $762.00 per month. which comes out to $9144.00 per year. I am just trying to find out what exactly does she need to file besides Form 982.
Submitted: 4 months ago.Category: Tax
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Answered in 4 minutes by:
3/23/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,334
Experience: Taxes, Immigration, Labor Relations
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Can you specify

- is that credit card debt?

- mortgage?

- student loan forgiveness?
- other?

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Customer reply replied 4 months ago
credit card debt , yes.
Customer reply replied 4 months ago
she received a 1099 form from credit card company stating that they are canceling her debt of $19,000 dollars and will be reporting this to the IRS.
Customer reply replied 4 months ago
as far as talking on the phone i will have to get my girlfriend who is not here right now
Tax Professional: Lev, Tax Advisor replied 4 months ago

You might be eligible to exclude all or part of canceled debt from taxable income if any exemption apply

-- you should file a form 982 -

www.irs.gov/pub/irs-pdf/f982.pdf

- to proof your exemption. you may exclude the forgiven debt - if you are insolvent .

.

For your own record - you need to keep an insolvency worksheet - the form may be found in IRS publication 4681, page 6 -

http://www.irs.gov/pub/irs-pdf/p4681.pdf

If you are insolvent - on form 982 - check the box on line 1(b) and
put the forgiven amount on the line 2 - $19,000

Attach form 982 to the tax return - form 1040.

We would need to file even otherwise she woudl not be required to file.

Let me know if you need any help.

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Tax Professional: Lev, Tax Advisor replied 4 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.

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Customer reply replied 4 months ago
I am having difficulty in giving you an excellent rating so that you will get the credit you deserve for answering my tax question on credit card debt forgiveness. How should i proceed in getting to the rating page
Tax Professional: Lev, Tax Advisor replied 4 months ago

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