I received a 1099-c form. I went into an agreement last September to re-structure my mortgage. I am still in my home and still paying the new mortgage amount every month. When I research this most of the time a 1099-c is sent when a home is foreclosed on, but my home wasn't I am still in my home,I do not understand why I recevied this. It is for a huge amount and now I am suppose to claim this as income. How does the restructure even help me then. Right now I am the only one working, my husband has been out of work and on workmans comp for two years we barely get by as it is, then if I ad ths $30,000 as income it will throw me into a higher tax bracket and I will probably have to pay, how is this fair I do not undestand why I received this, this doenst constaitute as a resturucture, just another sleezy way of then takeing money from me

Do NOT blame the mortgage company, because the law is clear: if you receive relief from your mortgage and a portion of the debt is forgiven, the amount forgiven is taxable income. The mortgage company had NO CHOICE but to originate the Form 1099-C.

You can set up a payment plan with the IRS to pay the taxes due. Submit Form 9465 with your tax return and the IRS will work with you to allow you to pay what you can afford on a monthly basis until the tax debt is paid off.

I'm not blaming anyone, I just had no idea I was going to have to claim this as taxable income. I looked back on the paper work I have when the modification was done and it says no where on it at all about this nor was it discussed. I have never in my life had to pay income taxes, I can barely afford to live day to day now that my husband is off hurt from work let alone have to pay an additional monies each month. That is why I got my Mortgage modified so I would have less payments every month. I understand the law is the law, but I also have to say on another hand I don't get it, I will be right back to where I was before, how does the modification even help