Credit card debt and 1099c forms. Once you file taxes will your credit card debt with company be gone?

Question by Kee Kee: Credit card debt and 1099c forms. Once you file taxes will your credit card debt with company be gone?
I recieved a 1099c form from a credit card company for a settled credit card debt. The amount is for $ 10,000. I only make $ 31,000 per year. Will I end up owing on taxes due to being in a different tax bracket?Will the debt finally be gone?

Best answer:

Answer by boilerette72
Sounds like your debt to the credit card is gone, but you’re going to pay tax on the forgiven debt.

use Turbo Tax for free and see where you are. It will ask you to put in the 1099c information.

Unless you paid some estimated taxes, you might also get a penalty for not paying enough taxes. but, try turbo tax.

The 1099C should have a “taxible” amount field on it.

What do you think? Answer below!