1099-C tax help

[mickmse]

I am doing my taxes via HRBlock online. My husband got a 1099-c for a debt forgiveness and it says I need to add this to the taxable income. I cannot figure out how to do this. Can anyone walk me through this please. Thank you so much.

 

[Green Tea]

It should be in the miscellaneous income section. If not, just search the forms area of the program for that paper # and you should get the information you need.

 

[jedijohn]

Try calling 1-800-HRBLOCK or use the online help.

 

[Green Tea]

(On turbo tax it is under Less Common Income, if that helps. The pgms are pretty similar)

 

[DaveClan]

If the 1099-C came from a collection agency, I would speak to a tax accountant. Collection agencies have been shady in the way they issue these forms. How can they issue a 1099-C for an amount forgiven if they purchased the debt for pennies on the dollar? Scumbag collectors do this so they can write-off the entire amount of the debt as a loss on their books; even though they're not entitled to do so.

It's worth checking out, as you may not need to claim this "income" in the end.

If the 1099-C came from the original creditor, I would also speak to a tax accountant to confirm your steps.

 

[LisaNJ25]

I just got one of those also but I have already e-filed. Mine is from the original creditor and I need to file and amendment.

 

[Cheshire Figment]

The 1099-C is included in Line 21 of the Form 1040. If the program has a worksheet for Line 21 go to that worksheet.

 

[CowboyCO]

If the 1099-C came from a collection agency, I would speak to a tax accountant. Collection agencies have been shady in the way they issue these forms. How can they issue a 1099-C for an amount forgiven if they purchased the debt for pennies on the dollar? Scumbag collectors do this so they can write-off the entire amount of the debt as a loss on their books; even though they're not entitled to do so.

It's worth checking out, as you may not need to claim this "income" in the end.

If the 1099-C came from the original creditor, I would also speak to a tax accountant to confirm your steps.

They need to claim the income. It doesn't matter what the agency paid for the debt. They took a risk that you would not pay anything. Just because a bank sells your mortgage does not mean you owe any less. They bought the debt and forgave a portion, which is income for the borrower since they never paid it back. Any amount over $600 requires a 1099_c filing according to the federal tax code.