Financial Products

Financial Products

Questions about financial product options? Find discussions around a wide variety of financial service products here. Looking for your first debit card or a seasoned saver looking for tips to build your bank account, this is a great place to share and learn.

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Pioneer
Posts: 1
Registered: ‎02-01-2016

1099 C debt question

I received a 1099 C and want to know if I can claim insolvency since I am not working, my house is not in my name and I have no income. I am married filing jointly. If not, where do I add this information? I can't find where to add the amount anywhere. Thanks!

Tax Pro
Posts: 5,609
Registered: ‎02-23-2016

Re: 1099 C debt question

Hi lorie182,

 

Welcome to the H&R Block community.

 

If you add up your total liabilities and then add up your total assets and compare the two totals that will tell you by how much you are insolvent (you're insolvent if your liabilities are greater than your assets).  Liabilities include all debts including the debt that was forgiven.  You can exclude the foregiven debt from income up to the amount by which you were insolvent immediatey before the debt was forgiven.

 

If this debt was from a forclosure or a bankruptcy then there will be another exclusion that you can take advantage of.

 

Hopefully this helps you out.

 

Louis,

Senior Tax Advisor (Tampa, FL)

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Valued Pioneer
Posts: 3
Registered: ‎03-13-2017

Re: 1099 C debt question

[ Edited ]

Hi LouisH,

 

Hoping you can assist with a more intricate case here.  I received a 1099-C to cancel debt for student loans, the document states at the top 'Tax Year 2013 Form 1099-C' and the Identifiable date (of release, box 1) indicates 12/03/2013.  The form itself was mailed to me in December 2016 and says on it 'Corrected as of 12/06/2016'. 

 

Questions

Do I file this with this year's taxes due to the correction?

Or was this for tax year 2013 as indicated and I can disregard for this tax year?

 

Thank you for any assistance here, I am very confused by this!