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b**ckbear19****
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2/1/2013 10:15:19 AM
“몇 년 동안 씨름 하던 크레딧 카드 Debt 이 1099-C cancellation of Debt statement 해서 왔읍니다. 우선은
1. 세금 보고 하기전에 확실히 Debt 자체가 면제된건지 알고싶습니다.
<내역에 #6 란에identifiable event code 에 G (Decision or policy to discontinue collection)라 표시 되어 있읍니다. 그리고 #5 란에는 was borrower personally liable for repayment of the debt? Yes 라고 표기 되어 있읍니다.#7 란에는 fair market value of property $0.00 라 되어 있읍니다..>”=======>Basically, The purpose of Form 1099-C is to report forgiven debts so they can be converted into income for tax purposes. If an individual receives a personal loan, it is not taxed as income. If the debt is forgiven and not paid, the loan can become taxable income. The form serves as notification to both the debtor and the Internal Revenue Service.Yur creditor sends a copy of 1099 to you and the IRS. Not all forgiven debt becomes taxable income. First the debt must exceed $600 to trigger a 1099-C. Debts forgiven by a federal government agency or a financial institution, credit union or other lender generally do become taxable. On the other hand, certain student loans, qualified farm debt, qualified real property business debt, debts canceled or reduced mortgages can be fully or partially excluded from a debtor's income.BOX #7; if a foreclosure or abandonement of pty occurred in connection with ther cancellation of the debt, the FMV of th e pty will be shown. Box #5: shows a description of debt. Code G—Decision or policy to discontinue collection means forgiven debt.
“2. 한 만불 정도의 면제 받은 금액의 세금 보고 시 얼마정도 물어내야 하나요?
<참고로 2012 년 에 개인적 사정으로 income 이 없는 상태 입니다.>”====>As it is nonbusiness debt, you need to report $10K on 1040 liner 21 as other income. Check the information on your Form 1099-C, especially box 2. Box 2 equals the total amount of debt canceled by the lender minus any property or collateral given for the debt cancellation.You neeed to report box 2 on Form 1040, Line 21.
You can visit the IRS webpage here for free tax return avcailability ; http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers
“3. 어떤식으로 세금 보고를 해야 하는지 전문가분들의 답변과 의견 부탁드립니다.”===> If you receive a 1099-C, you must file a tax return and
Either include the amount claimed on the 1099-C form and pay taxes on it if your total income for the year is enough to be taxed, OR tell the IRS that the amount is not taxable because you fall under one of two common exceptions: Exception #1: The debt was discharged in bankruptcy before it was charged off by the creditor,
OR
Exception #2: You were “insolvent” at the time the creditor charged off the debt. If you decide that you are/were insolvent, you will need to explain this to the IRS. You can do this in one of
two ways:
1) By using the IRS Form 982.(You can get this form from the IRS, but it is difficult to understand), OR2) By attaching a letter to your tax return with information on your debts and assets. You will need to check the box next to the part about being insolvent.
1. 세금 보고 하기전에 확실히 Debt 자체가 면제된건지 알고싶습니다.
<내역에 #6 란에identifiable event code 에 G (Decision or policy to discontinue collection)라 표시 되어 있읍니다. 그리고 #5 란에는 was borrower personally liable for repayment of the debt? Yes 라고 표기 되어 있읍니다.#7 란에는 fair market value of property $0.00 라 되어 있읍니다..>”=======>Basically, The purpose of Form 1099-C is to report forgiven debts so they can be converted into income for tax purposes. If an individual receives a personal loan, it is not taxed as income. If the debt is forgiven and not paid, the loan can become taxable income. The form serves as notification to both the debtor and the Internal Revenue Service.Yur creditor sends a copy of 1099 to you and the IRS. Not all forgiven debt becomes taxable income. First the debt must exceed $600 to trigger a 1099-C. Debts forgiven by a federal government agency or a financial institution, credit union or other lender generally do become taxable. On the other hand, certain student loans, qualified farm debt, qualified real property business debt, debts canceled or reduced mortgages can be fully or partially excluded from a debtor's income.BOX #7; if a foreclosure or abandonement of pty occurred in connection with ther cancellation of the debt, the FMV of th e pty will be shown. Box #5: shows a description of debt. Code G—Decision or policy to discontinue collection means forgiven debt.
“2. 한 만불 정도의 면제 받은 금액의 세금 보고 시 얼마정도 물어내야 하나요?
<참고로 2012 년 에 개인적 사정으로 income 이 없는 상태 입니다.>”====>As it is nonbusiness debt, you need to report $10K on 1040 liner 21 as other income. Check the information on your Form 1099-C, especially box 2. Box 2 equals the total amount of debt canceled by the lender minus any property or collateral given for the debt cancellation.You neeed to report box 2 on Form 1040, Line 21.
You can visit the IRS webpage here for free tax return avcailability ; http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers
“3. 어떤식으로 세금 보고를 해야 하는지 전문가분들의 답변과 의견 부탁드립니다.”===> If you receive a 1099-C, you must file a tax return and
Either include the amount claimed on the 1099-C form and pay taxes on it if your total income for the year is enough to be taxed, OR tell the IRS that the amount is not taxable because you fall under one of two common exceptions: Exception #1: The debt was discharged in bankruptcy before it was charged off by the creditor,
OR
Exception #2: You were “insolvent” at the time the creditor charged off the debt. If you decide that you are/were insolvent, you will need to explain this to the IRS. You can do this in one of
two ways:
1) By using the IRS Form 982.(You can get this form from the IRS, but it is difficult to understand), OR2) By attaching a letter to your tax return with information on your debts and assets. You will need to check the box next to the part about being insolvent.
