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    Stan30K's Avatar
    Stan30K Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 23, 2008, 06:07 PM
    What will 1099-C Cost us?
    Hello,
    New here and could use some advice. I just received a 1099-c from a credit card company which I settled a debt with. It is for about $2,700. I am curious as to how much this will cost my wife and I (filing jointly) when we make about $92,000 combined. Is this really going to hurt us bad? We have no dependents and we rent an apartment. Any help/advice would be greatly appreciated. Thank You!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 24, 2008, 08:53 AM
    You are squarely in the 25% tax bracket, so the extra $2,700 in income (reported on Line #21 of Form 1040) will cost you $675 in federal income tax.

    There is a state tax liability as well.
    Stan30K's Avatar
    Stan30K Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 24, 2008, 04:53 PM
    Thank You! I thought that we would end up paying much more than that. So if we file online with Turbo Tax or such, we just input that amount on line 21? Or do we really need to go to a tax preparer? Because other than that we just have our 2 jobs , no dependents, we're renters, to report. Because we were going to try the online route this year. What do you suggest? Thanks for the help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 24, 2008, 08:33 PM
    Just enter it on Line #21 on Form 1040. TurboTax was designed for people like you.
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