Over 400k in 1099's!!

[Overmylimit]

OK so I was discharged in April last year and have started reestablishing credit and getting back on track. In the last week or so now the 1099's from the banks are pouring in. My worry here is if I have to claim all this $ on my taxes I will have to pay a ton and wind up right back where I was when I filed...any thoughts?

[BrokeinMD]

Des posted this on another post about the same topic:

There is no forgiveness of debt income for debt discharged in bk. You report it but file this form 982:

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

[Overmylimit]

Thanks for the info, so in other words I report it but I won't have to pay any tax on it?

[justbroke]

Yes, Form 982 allows you to avoid paying taxes on "discharged" debt. If you are thinking about filing your own taxes, might I suggest a professional tax service (Hewitt, H&R Block) to handle it this year. You want to make sure you process those 1099-A/Cs correctly on Form 982.

[panda]

I actually have the H&R Block Premium tax program and it has the 982 form and if you use the search button for 982 it will walk you through what needs to be done. I have always done my own taxes so am comfortable doing this with my tax program. I do understand that others may need more help and should seek tax advice in that case.

[ssmdem]

Good to know. We filed on December 14th but haven't had our 341 yet. I'm guessing I don't need to worry about this until next year's tax filing since I have received nothing from my creditors.

[Overmylimit]

Thanks for the info, I have a tax/accountant I have used for years and he knows of the discharge. I will bring a copy of that form in to make sure he knows all about it.

[idainc]

We filed in April '10 and were discharged in July '10. We discharged everything including a 1st & 2nd and a ton of cc's. Today is the 28th and I'm ready to file and have'nt received any 1099's. The IRS has been notified of the BK as well as our state. I have no recourse issues to be concerned about at all. Even the house sold at auction for more than the 1st. What is the consensus of the group regarding the likelyhood of me receiving a 1099 for anything right now ? Thanks !

[2manybills]

I just started another string of posts, but will post here. I received one from Bank of America today. Our debt was discharged in November 2009 and closed in December 2009. It's odd that they sent this for the year 2010. Oh well, thanks for the posts!

[JNOMONEY]

We filed in April '10 and were discharged in July '10. We discharged everything including a 1st & 2nd and a ton of cc's. Today is the 28th and I'm ready to file and have'nt received any 1099's. The IRS has been notified of the BK as well as our state. I have no recourse issues to be concerned about at all. Even the house sold at auction for more than the 1st. What is the consensus of the group regarding the likelyhood of me receiving a 1099 for anything right now ? Thanks !

u might want to wait , just got mine today from the 1st mortgage , i was scared untill i read all of this

[tcreegan]

Hi all,

...if a company (not on cash basis) wants to write-off your debt (for tax advantage, slant quarterly earnings statement) the IRS says they have to issue a 1099-c But companies aren't required to write-off debt, they can keep it on the books or handle it differently depending on their accounting method. Also, if the cancellation of debt is non-taxable, they don't have to issue a 1099 (but they ususally do) So there are several reasons you might not get a 1099-c

If you do get one, that doesn't necessarily mean you have to pay tax on it. There are several exclusions, including a debt discharged in BK

Tax-time lurks around the corner...enjoy HA!

Tom in Colo

And the IRS

[sunflwrgrl13]

Slightly unrelated to this topic. For those of you who have moved (assuming you gave up your home in the course of the BK), and are receiving a 1099c 18mo later, how did the creditor find/get your current address? I ask because we are going to move in with parents shortly, since we are giving up our home, and then later this year we are relocating overseas. We do plan on putting in a 'mail forward' to a PO Box, but a forward only works for about a year so. So how would the creditor get your current address if they send a 1099c 2years later? Did you call the creditors and give them your new address or something? Sorry if this seems obvious..maybe I'm just overthinking it! ;-)

[justbroke]

Maybe overthinking, but most "savvy" creditors subscribe to the "address change" notification service offered by the U.S. Postal Service.