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View Full Version : What happens if you don't file a 1099-c


Scooter 3
Feb 4, 2010, 06:16 AM
My husband filed bankruptcy in 2003 but I did not. We just received a 1099-C from the mortgage company in my name that said it has been written off. From what I have read on the internet, "I" have to file the amount on MY taxes this year as income. Is there anything I can do to avoid claiming all this money as income?

ebaines
Feb 4, 2010, 06:50 AM
The 1099c documents a cancelled debt, which typically does count as income (unless you declare bankruotcy). However - if this canceled debt is from a mortgage on your principal home, the good news is that you may well be able to take advantage of the Mortgage Forgiveness Debt Relief Act - see the following: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation (http://www.irs.gov/individuals/article/0,,id=179414,00.html) You will have to file Form 982 with your tax return to take advantage of this.