In 2003 I paid off a charge off from Chase. i just received a 1099-C in the mail regarding the Charge off for tax purpose. the original limit on the card was $500.00 and at the time the total owed to chase was $3000 (f###ing late fees and over limit fees). i settled with them for deletion and paid them $1000. this letter is stating they cancelled $2000 worth of debt and the interest was $1500. the letter also states that any amount over $600 has to be reported as Other income.. what the F##K!!! any input would be appreciated. td
Do a search for 1099 and you'll see Butch already has this topic covered... This is an annual thing... There are ways to resolve this, but some of them depend on a lot of issues (was the account disputed, etc.)
Yes, any amount forgiven is considered income to the IRS and you have to report it as such on your tax return.
Yes, I did and there are some instances where you don't have to use it but I was talking in general. This board seems to find ways to skirt your debts. Why not just pay for that stuff you charged and take any penalties? And that other thread talks about people paying for stuff that ISN'T theirs? What's up with that? If you pay it you are taking responsibility for it and you are admitting you owe it. So just take the tax penalty along with owning up to the debt. The cost that is forgiven just goes to the consumers who pay their bills. And that to me isn't fair.
iam, why not have companies stop trying to s**** their customers. When more than 3 times the amount is 'fees' and 'interest', something is wrong with that picture.
What were the fees and interest FOR? I bet cause it went to Collections which means you ignored the debt, right? Wouldn't it be better to pay what is owed before it comes to that? Then the fees and interest would be not a factor. That isn't anyones fault but the person who charged the cards up and didn't pay. Credit cards aren't to use to charge stuff and then not pay. That is why I pay mine in full each month and then I pay no interest or fees. Seems everyone who doesn't pay has to blame someone else besides themselves. Nobody held a gun to your head when you charged that stuff, did they?
