Re: Question regarding 1099C...computerguy's reply
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Posted by LadynRed
(68.32.101.73) on January 18, 2004 at 11:03:32:
In Reply to: Question regarding 1099C...computerguy's reply posted by Rapidlygoinggray on January 18, 2004 at 10:57:17:
Computerguy made a habit of posting inaccurate or misleading information. Did you make a SETTLEMENT with MBNA ?? 1099-c's are issued for forgiven or cancelled debt of $600 or more. If applicable, the amount shown on the 1099C would be reportable as income on your 1040. HOWEVER, there IS a loophole. If you can show that you were insolvent at the time the debt was cancelled, then you do NOT have to put the 1099-C amount on your 1040 as income. I believe there is a form to fill out to prove insolvency to the IRS. Insolvency isn't hard - if you have more debts than assets - you're insolvent.
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