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    MNAIR's Avatar
    MNAIR Posts: 1, Reputation: 1
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    #1

    Jan 3, 2007, 12:10 PM
    1099c
    Hi ,

    From a debtors point of view is it better for me to Settle an account in full or pay in full?

    If I settle an account and the Debtor writes off more than $600 -How much tax will I end up paying according to 1099c ?

    Regards,
    Madhavi
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 3, 2007, 02:39 PM
    Madhavi:

    From a debtor's point of view, it is always better to write off the account. You may have to pay taxes, but it will NEVER be equal to the debt.

    You will pay taxes based on your marginal income tax rate, which depends on your total income.
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1099c [ 1 Answers ]

I had a credit debt of $14,000 and settled to pay 7,000, which I had borrowed from my brother. How does this affect me filing my taxes? The 1099 C is for $7,000. By adding this as other income, I think it will make me owe quite a bit ot the IRS. Can you shed some light on this.

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