M
Meesha L
Guest
We filed our taxes mid January. Low and behold in the mail about 3 weeks later we get a 1099C from one of our creditors. I have been reading online but I'm so confused if we would be considered insolvent and not have to pay taxes on it. I'm trying to get this figured out as soon as I can so that I guess I can file an ammendment?? before april 15th
Here is some background.
We have $30,000 in Credit card debt that we are behind in, all of them are in collections. We rent an apartment we have a car worth $500 and a car worth maybe $5000. We have just basic household stuff, Nothing extravagant, basic furniture and couple little TV's, Clothes, Well you get the Idea. We have a NET income of $20,000 a year and monthly necessary expenses for living about $1500/month. We live paycheck to paycheck literally. We qualify and accept Food Stamps Supplement and our daughter is on State insurance. The 1099C was for a forgiven amount total of $893 which of course we don't have that amount nor will we have the amount to pay taxes on it.
So is there any professionals reading this that know if we are more than likely considered insolvent? I just don't understand if they look at the total debt we owe to everyone as $30,000, or if they just see the $893 dollars as hey you could sell your car? Also I filed through H&R block and I have no idea what to do as far as an ammendment goes, Thanks much!
Here is some background.
We have $30,000 in Credit card debt that we are behind in, all of them are in collections. We rent an apartment we have a car worth $500 and a car worth maybe $5000. We have just basic household stuff, Nothing extravagant, basic furniture and couple little TV's, Clothes, Well you get the Idea. We have a NET income of $20,000 a year and monthly necessary expenses for living about $1500/month. We live paycheck to paycheck literally. We qualify and accept Food Stamps Supplement and our daughter is on State insurance. The 1099C was for a forgiven amount total of $893 which of course we don't have that amount nor will we have the amount to pay taxes on it.
So is there any professionals reading this that know if we are more than likely considered insolvent? I just don't understand if they look at the total debt we owe to everyone as $30,000, or if they just see the $893 dollars as hey you could sell your car? Also I filed through H&R block and I have no idea what to do as far as an ammendment goes, Thanks much!