Ask Experts Questions for FREE Help !
Ask
    mcalli's Avatar
    mcalli Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 7, 2011, 01:12 PM
    Not required file 1040
    I am not required to file a 1040 tax form for last year (2010), either by a filing status of married filing jointly or married filing separately. My problem is that I received some 1099-C's in February which claimed that this company that I don't know had canceled some debts. So, I need to let the IRS know that I am insolvent. I was wondering if anyone knows if I absolutely have to file this 982 or if I could just fill out an insolvency worksheet with my info and an explanation and mail it in without filing any type of forms with the IRS.
    Quoting from page 86 of the 2010 Tax Guide, "Do not include a canceled debt in your gross income in the following situations...The debt is canceled when you are insolvent."
    So, I don't have to add this canceled debt to my income and I don't have to file a 1040. Am I right?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 15, 2011, 01:24 PM
    Unless you have some legal action such as a bankruptcy to PROVE your insolvency, you need to file a tax return to account for that 1099-C debt.

    Crunch the numbers using on-line tax software; you MIGHT find you are eligible for some tax credits due to the Form 1099-C income.

    If you need professional help filing your return, email me at [email protected] or [email protected].
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

If I file a schedule c-ez can I file 1040-ez [ 0 Answers ]

If I file a schedule c-ez do I have to file a 1040 or can I file a 1040-ez

Can I file as a resident and still file a 1040-S form? [ 1 Answers ]

Hi, I am not entirely sure if I am a resident or non-resident, but it seems I may be the former. However, for this year my employer didn't withhold any federal taxes and I planned to file a 1042-S. Is this a problem/contradiction - to claim tax treaty benefits while filing as a resident? Many...

Five years F-1, file jointly, 1040 or 1040 NR? [ 3 Answers ]

Hi, I understand this question may have been asked several times here, but just want to confirm some of my special situations: I have been a F-1 student since September 2003, currently I am on OPT (since August 2008). According to some of the earlier topics on this forum, I should file as...

Do I need to file Form 1040 NR EZ and 1040 together? [ 4 Answers ]

I am on OPT. I have a resident alien for tax purposes as of 31 December 2006 although I was on a non resident alien status until July 2006. Do I need to file both Form 1040 and 1040 NR EZ or just one of them also how can I file it in turbo tax. Do I Need to file 1040 NR or 1040 NR EZ? Also Do...

Whetehr to file 1040 or 1040 NR [ 1 Answers ]

Hi Experts, I have a situation here. I entered in MID 2002 in USA. I am having H1B1 work visa. I supposed to be on job since my 1st day but my consultant as failed to provide me a job. So I was living by doing ODD jobs. Now back in sep 2005 I got proper job. Till to date. My...

View more questions Search