Re: Can a Creditor take money from my salary/income?
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Posted by Judgmental
(12.228.108.56) on January 07, 2004 at 03:48:10:
In Reply to: Can a Creditor take money from my salary/income? posted by QuickDraw McGraw on January 07, 2004 at 01:37:22:
Debt collectors make me laugh. A 1099-C is simply a tax document. That's the form creditors use to report cancelled debts to the IRS. It's like a W-2 from your employer, but for cancelled debts. The amount of the cancelled debt is treated as additional income for you on your tax return. 1099-C are typically only filed for cancelled debts totaling $600 or more. The 1099-C is not necessarily harmful to you. It's not a court action or anything. It just means that you will have a extra income to report to the IRS at tax time. If the amount of the cancelled debt is substantial, then it could leave you with a big tax bill. That's the only downer. How much is the debt in this case? Also, how'd this come up in the conversation? As far as I'm concerned, it's a silly gibberish threat. She's hoping you don't know what a 1099-C is and get scared. Go to www.irs.gov to learn more about the 1099-C. There's a link below to the actual pdf of the form.
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