Taxes owed on "cancellation of debt"????

Oh my gosh, this is new to me. :shock:

I googled this...

If the creditor filed a 1099-C, then it looks like you will need to remedy this by filing form 982 with the IRS. Hope this helps.

I have just recieved a cancellation of debt on a credit card about 900.00 I have already recieved my tax returns and was wondering if I could file this next year?

please help
thank you a friend

Did the 1099-c show 2008? If so, you can file an ammended return but you would only be taxed on $300. IF it shows this year file next year.

Nascar...when we filed a 1099 for my husbands cas-ino win ($1100), we paid tax on the entire amount, not what was in excess of the $600.

thank you for your help. how long do i have to file a ammende and do i have to fill out a 982 form with that

You have to show the entire amount of forgiven debt. In the OP's case $900 but per the IRS instructions, only $300 would be taxable.

I sold my house through a Short Sale Process in 2008. I bought the house in 1998 as my primary residence. In 2005 I bought a new home and put this home up for sale - of which it never sold. I intermittently had renters in there while trying to sell. But now I guess I am being told that I must claim the cancellation of debt monies as income since it was not my primary residence. Is there any loop holes or ways around this? This was never purchased as rental property. Help! I need some advice quick! Thanks!

I was wondering if I can file a 1099-c 2008 next year or is it better to file a 982 :roll:

I had 2 cars repossesd in 2001. One was in March I believe and the other was somewhere between April and May. From working in collections law I know that the statute of limitatons is 7 years from the date of last activity. I had no contact with the bank during those 7 years so the statute should have run out in the first part of 2008. Yesterday I received a notice from the IRS proposing changes to my 20008 return because of cancellation of debt on these 2 vechicles. In the section where it lists the debts being cancelled it lists both cars and they both show a "Sale Date" of 12/11/08. I want to know if that was the date that they "Cancelled" or "Forgave" the debt? If so, that date is way after the statute ran. Not only that, but I never received a 1099-C from these people which from what I've read, I should have gotten. I only made $16,000 that year because that was the year that the economy tanked and I was laid off and was unemployed most of the year. Right now I'm one of the lucky few who has a job but it pays very little because they know they can get away with it because of the economy. I only make $20,000 a year and can barely support myself as it is. Now they want me to pay $1154 by April 7th. Today is the March 21st and I just got this notice from the IRS yesterday. None of this makes sense to me?!??!