Debt Relief Tax Implications

[JerryH]

I had debt I was unable to pay, so I signed on with a Debt Settlement company (Debt Settlement USA) and they were able to negotiate my debt down to levels where I was able to pay them off. Now the credit card companies have sent me 1099 forms. My question is do I have to claim this as income on my taxes or can I dismiss them and claim I was insolvent?

Yes that has been reported to the IRS, and they will want their taxes on that.

Originally Posted by JerryH I had debt I was unable to pay, so I signed on with a Debt Settlement company (Debt Settlement USA) and they were able to negotiate my debt down to levels where I was able to pay them off. Now the credit card companies have sent me 1099 forms. My question is do I have to claim this as income on my taxes or can I dismiss them and claim I was insolvent?

Were you happy with their service? And how much did they charge you? Thanks

[monument1]

WE HAVE BEEN INVOLVED WITH A CONSUMER CREDIT DEBT SERVICE FOR 4-1/2 YEARS NOW - NON-PROFIT - AND THEY DO NOT CHARGE US ANY FEE AND WE DO NOT GET 1099 FORMS FROM OUR CREDIT CARD COMPANIES THAT WE ARE PAYING OFF THROUGH THE CONSUMER DEBT SERVICE COMPANY. WE CAN'T UNDERSTAND WHY YOU WOULD RECEIVE A 1099!

Only apply to debt forgiven over $750.00 If you are paying a settled amount via installments, you will not recieve the 1099 until settlement installments complete.

And they will be recvd by 01/31 of the following year.