IRS Form 1099-C walkthrough (Cancellation of Debt)
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- Опубліковано 28 гру 2023
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Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.co...
If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmepersonalfinance.co...
Here are links to articles we've written about other tax forms mentioned in this video:
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmepersonalfinance.co...
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IRS Schedule C, Profit or Loss from Business (Sole Proprietorship)
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule C Walkthr...
IRS Schedule E, Supplemental Income
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule E walkthr...
IRS Schedule F, Profit or Loss from Farming
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule F walkthr...
IRS Form 4835, Farm Rental Income and Expenses
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 4835 walkthro...
IRS Form 8822, Change of Address
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8822 walkthro...
IRS Form 8822-B, Change of Address or Responsible Party (Business)
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8822-B walkth... - Навчання та стиль
Hey, I have a really interesting situation. I would like your expertise with.
So the State has routing numbers dose it matter what one you use in in Maine and it's showing me like six of them
I am not familiar with Maine tax laws. I'd recommend that you discuss this with a tax practitioner who is familiar with Maine tax laws.
Problem is that tax practitioners don't understand this usage of this tax form
Good video!
Can you file a 1099c to a debtor who owes you money as a result of a small claims case judgment? Also, how do you find someone's TIN?
Generally, Form 1099-C is filed when debt is erased or forgiven, not while you're still trying to collect on it. So if you're expecting that person to actually pay on the debt, you would not file this form.
The form instructions provide the following guidance when it comes to trying to obtain a TIN from a debtor:
You must make a reasonable effort to obtain the correct name and TIN of the person whose debt was canceled. You may obtain the TIN when the debt is incurred.
If you do not obtain the TIN before the debt is canceled, you must request the debtor's TIN. Your request must clearly notify the debtor that the IRS requires the debtor to furnish its TIN and that failure to furnish such TIN subjects the debtor to a $50 penalty imposed by the IRS. However, a debtor is not required to certify his or her TIN under penalties of perjury.
You may use Form W-9, Request for Taxpayer Identification Number and Certification, to request the TIN.
IRS Form W-9, Request for Taxpayer Identification Number and Certification
Article: www.teachmepersonalfinance.com/irs-form-w-9-instructions/
Video: ua-cam.com/video/zimvkM8v0w0/v-deo.html
So what if your creditor don't send you a 1099c? Can you get your own and fill it out?
I don't think that it would work that way. If you didn't actually have your debt canceled by your creditor, then you wouldn't receive one. It might be worth double-checking with your creditor to make sure you understand how they reported your debt cancellation (or if they did at all).
Hello- if a tenant has not been paying rent, can I file 1099C if I assume I’d never get my money back without first getting a judgement from court? Thanks in advance.
Generally, no. According to the instructions, filers are financial institutions, lenders, or government agencies. What purpose would this serve for you?
@@teachmepersonalfinance2169 thank you. It would do nothing for me but serve as a warning to others in case IRS investigated and then agreed the person owed taxes to them for this unpaid rent. It adds no direct value to me but will make a certain point with the other person who tricked me into waiting for my rent for almost a year lol
If I receive a 1099-c from creditor can they come baxk and sue me years later?
This is a legal question that I'm not qualified to answer. However, I have read about court cases where a lender issued a Form 1099-C, then still tried to collect on the loan. When the borrower tried to have this thrown out in court, the court sided with the lender: www.accountsrecovery.net/2022/06/15/appeals-court-upholds-creditors-right-to-collect-after-issuing-1099-c-notice-to-plaintiff/
How does this apply to property taxes?
It does not. Only lenders would issue this form, and only if the debt is $600 or more.
Is there a statute of limitations on a creditor or debtor? What if you received one for an event from 2009?
That's a legal question that I cannot answer. It also varies state by state. However, if you Google 'statute of limitations' + creditor + (state you live in), I'm sure you'll find plenty of articles that cover this in depth.
If I have done this for student loans and received copy B back. What else can I do? Do I have to reach out to anyone once I receive copy B back?
You may need to report this on your tax return, even if you don't have to include it in your income.
Without knowing the specifics of your tax situation, I cannot determine whether this would be taxable income to your or not. However, you should be able to discuss this with a tax professional and they would be able to help.
IRS Publication 4681 also discusses this, if you would rather learn this on your own without talking to a tax professional: www.irs.gov/pub/irs-pdf/p4681.pdf
I wish I could speak with you via phone, I read through some of the IRS publications 4681 and I'm even more confused and afraid. In my divorce decree my ex was told to have my name removed from the consumer loan ona trailer, he never did and died. My daughter and her husband then were making payments then they got a divorce and she left it and some debt collector came after her for payments which I couldn't make payments as I was living out of town under an apartment contract and so they repo it. Now years later I get this form 1099 c with 35,981. 09 debt discharged. I am so terrified and don't know what to do
Im in a similar situation. Mine was a college loan that was accepted by the IRS. How exactly would I file my taxes?
@@datswhuzzaname5303 If you qualify to exclude this from income by filing IRS Form 982, then you may be able to report it without having to pay taxes on it. If you cannot exclude it from income, then you'll have to report it as 'Other Income' on Schedule 1. Below are links to resources on both tax forms.
IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness
Article: www.teachmepersonalfinance.com/irs-form-982-instructions/
Video: ua-cam.com/video/_bJn-mYdB-I/v-deo.html
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmepersonalfinance.com/irs-schedule-1-instructions/
Video: ua-cam.com/video/TUMnegmniDI/v-deo.html
I'm doing this now, did you ask them to deposit your security into your TD account, too?
I have been notified by the IRS that my 1099c form submitted is accepted.
My question is, should I call them so I can receive my copy B form?
And afterwards, how exactly do I fill out my taxes considering the fact that my 1099c was submitted and accepted by the IRS?
You should contact the entity that canceled your debt to receive your Copy B. You may be able to exclude this canceled debt if you meet the criteria to file IRS Form 982. Otherwise, you may have to report canceled debt as 'Other Income' on Schedule 1.
Below are links to resources on both forms:
IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness
Article: www.teachmepersonalfinance.com/irs-form-982-instructions/
Video: ua-cam.com/video/_bJn-mYdB-I/v-deo.html
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmepersonalfinance.com/irs-schedule-1-instructions/
Video: ua-cam.com/video/TUMnegmniDI/v-deo.html
How do I file the 1099 copy b Im non taxable
I can't give you a specific answer, as there is a lot of information that would determine how to report your canceled debt to the IRS, and whether or not you should include it in income. IRS Publication 4681 might help you understand this within the context of your own situation: www.irs.gov/pub/irs-pdf/p4681.pdf
My credit card dead was sold to a credit collection agency why i just received a 1099c from the credit card company after my status of limitation end
I'm not sure I understand your question. If you received a Form 1099-C, it is probably to report the credit card debt that might have been canceled, regardless of cause. What specifically did you want to know?
@joeynyc1000 ….do I know you? 😉🥰
What’s interesting is there is MAJOR fraud taking place out here, who is the cc co?! They charged it off the debt should have never been sold! I’d prepare to sue the debt collector! We’ve never been taught how to properly file these “voluntary” taxes correctly!
So if you receive a 1099-c , can you have that debt removed from your credit if it's discharge/forgiven?
What happens if Box 2 says 0.00. Then what?
It doesn't seem like there's canceled debt to report as income. I can't really give you specific advice, but here are some questions that I would be pondering:
1. Who issued this form? Did you have an outstanding debt through this company/lender? If so, do they need to reissue a correct version?
2. What other information is on the form?
3. What, if anything, does this form have to do with my tax situation?
If you honestly don't know where this might be going, then it might be worth contacting them to ask why you received this form. They should have only filed this form if they discharged $600 or more of debt. So you might need a corrected version, unless you have records indicating the exact amount that was discharged.
However, you are supposed to report all canceled debt as 'Other income' on Schedule 1 unless a reduction of tax attributes applies. For example, in bankruptcy, you can file IRS Form 982 so that you don't end up having to report the canceled debt as taxable income.
Here are references with more information on Schedule 1 and IRS Form 982:
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmepersonalfinance.com/irs-schedule-1-instructions/
Video: ua-cam.com/video/TUMnegmniDI/v-deo.html
IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness
Article: www.teachmepersonalfinance.com/irs-form-982-instructions/
Video: ua-cam.com/video/_bJn-mYdB-I/v-deo.html