1099 Misc

By Fed Law they are suppose to have the 1099C to you by 1/31 of the following year. If you don't get one, you don't file it. The IRS told me that until the creditor charges off and send you the 1099 you do not file the amount. She told me that some creditors will do it the following year. Were you insolvent when you settled? Otherwise, did your debts exceed your assets, if they did, you would file form 982 with your 1099C and would not be responsible for tax on the amount you are insolvent. However, do an asset and liabilities sheet of your position so you can show the IRS what your position was in the event of an audit.

They only send a 1099 if what they settled off of was more thatn $600

Moderator: this topic needs to be bumped to the Tax forum, thanks..:)) I would amend what's been said to say that tax laws stipulate that documents need to be in the mail by 1/31, not received by 1/31. So I would definately wait on this one and if you haven't gotten one by this time next week, then move to plan b.

Like soaplady said, any cancellation of debt over $600 should be reported by the creditor. If you receive a 1099C then you should definitely report it on your 1040.

However, in practice, I find many companies do not actually issue 1099C's. In 2006 & 2007, I settled 4 credit cards, all for more than $600 over the actual amount; yet only 1 of the 4 sent me a 1099C.

BUT to answer your question, any 1099's should be postmarked and mailed to the debtor by 1/31/08. Maybe you should wait a few more days in case your mail is running slow.

What are some of the deductibles i can present

Let me get this clear, as I am in the same situation. If they file a 1099c in the next year do I have to do an amended return for 2007 or do I put it on my 2008? :roll:

An ammended 2007 return, I would think. It didn't happen in 2008, regardless of when it was reported.

Darn.........I hate the thought of doing my taxes once let alone twice. :x

I just don't think that is fair. If they are required to mail 2007 information out to you by Jan 31 2008 but wait until the following year, why would we be required to claim this income. I know life isn't fair so I should just get over it. I just needed to give my opinion. :)

[quote=mommontoya]Darn.........I hate the thought of doing my taxes once let alone twice.[/quote]

How do you do your taxes, anyway? If you're using something like TurboTax, it would be a painless procedure to spit out an ammended return. Should take about 15 minutes. If you're using a pencil, it could well be a pain in the a$$.

I know Unc......I use Taxcuts.
Just wanted to snivel a little

I agree with mom, they should have to have it out by january 31 and if they dont have it out tooooo bad.

for you mom...