Debt Consolitdation Money

Last yr I went through a company to consolidate my large credit card debt. Last yr, I settled with one of them and payed them off, but I got about $3000 taken off what I owed. I recieved a 1099 c I believe. When I tried to go on line to do my taxes, I went to that area of 1099s but found no place to enter this information. Do I need to do this? And will this affect my refund?

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Debt Settlement Tax Question

by RJ
(Whitesboro, NY, USA)

Debt

Debt

Hello,

My spouse enrolled in a credit card debt settlement program last year where they settled on about $22K. Because of this decision we owe about $7,000 in taxes.

Is there anything out there that can help us reduce what we own on the taxes? The reason why she went through the settlement program was due to financial hardship.

Our tax advisor told us that there was nothing that we could do. However, we called the IRS and they stated that as long as our debts are higher than our assets there is something we can do.

Please clarify what our options are.

Thank you.

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Debt Settlement Costs

Can I deduct the costs/commissions that my settlement comany charged for negotiating the cancelation of some of my credit card debt that I have to claim, because it becomes 1099C income? And if so where would I enter the deduction?

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