capital one is cancelling $1231 of my credit card debt but it says if i pay the $800 i may have to do this form? i dont understand, can someone explain please?
Not sure what the $800 is all about, but capital one will issue you a 1099C form if it is applicable. You will typically report the debt forgiven that is listed on the 1099C, onto your tax return as taxable income.
I literally dont understand anything about taxes, im 20 and this debt is from when i was 18, my parents have taught me nothing and the more i try to research, the more im confused
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Not sure what the $800 is all about, but capital one will issue you a 1099C form if it is applicable. You will typically report the debt forgiven that is listed on the 1099C, onto your tax return as taxable income.
Were you insolvent?
You can also try and see if you’re eligible for insolvency exclusion. https://www.irs.gov/forms-pubs/about-form-982
I literally dont understand anything about taxes, im 20 and this debt is from when i was 18, my parents have taught me nothing and the more i try to research, the more im confused