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jaykiiiid · Jan 3, 2007, 04:41 PM

I am on a fixed income [SSDI] and I had a credit card amount of about $6000.00 written off by them because of my recent disability and lack of funds. I did pay them half [about-$6000.00]. So now we are even, but they sent me a letter stating they are required by Internal Revenue code, section 6050P to report this amount [$6000.00] and to issue a form 1099-C. Being on a fixed income only, I haven't had to file, but does this mean I will have to and do you know how much {ball park figure} I might have to pay? Thank you! :) Also, I didn't file last year because a few people said I didn't have to nor need to, I would owe them nothing and they would owe me nothing, is this true also? My only income is SSDI.

AtlantaTaxExpert · Jan 3, 2007, 05:51 PM

If your only income is SSDI, then your friends are correct, you need not file a tax return.

When you add the $6,000 to your SSDI, you would have to receive income in excess of $47,900 in SSDI benefits before you would owe any income taxes.

BOTTOM LINE: Unless your SSDI exceeds $47,900, you will owe ZERO tax. You may want to file a Form 1040 to account for the Form 1099-C, but no tax will be sue.