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.

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.