QUESTION
Can I claim the money I pay to the debt reduction services for the 1099-C I received?
Asked on Mar 06th, 2015 on Taxation - Michigan
More details to this question:
I received 1099-C, filed amendment, so I took a big loss but can I claim the money I pay to the debt reduction services as well for this? $20000 credit card gone but I pay to debt reduction place instead. So understand I need to claim the $20000 as income (done) but seems like since I do pay some each month to debt reduction company some of that would be allowed to offset?
1 ANSWER
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I need more details to counsel you. It may well be that you have been relieved of $20,000 in debt and it is been written off, therefore you would not have to repay that dad but you have other debts that you are paying. If the debt is not been written up, you should not have received a 1099.
Answered on Mar 09th, 2015 at 2:29 PM