Charged Off Debt Considered Earned Income On 1099-C by IRS

Cancellation of debt form

1099-C

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Surprise tax problem

The problem: Many consumers have no clue what the 1099-C forms are, and some may trashing cancellation of debt notices because the forms are sent by creditors or debt collectors with whom they thought they no longer had business. Still others are not filing the 1099-Cs with federal income tax returns — putting taxpayers at risk for IRS audits, penalties and fines. Consumer credit counselors and tax attorneys say few consumers are aware of the tax implications of settling to pay a lesser amount than they owe in credit card debt.

I got a 1099-c form in the mail for a reprocessed vehicle the creditor sold at auction for little of nothing, I told. Now,12,000+ is debt cancelled after many years. How is that income? I did not earn an overpriced charged for a vehicle they sold at auction. I didn’t abandoned it repo guy was waiting at our home when we got home and said he was their to pick up the vehicle and that the company was going to sell it to a buddy for little of nothing and make us pay for it any way. I’m like, Makes no sense for wealthier to buy for nothing and Low status to pay through the roof. But I understand how system works and there’s nothing I can do to make my lot better. If justice is fair I’ll survive this, if not I’ll struggle until God’s bring about changes that is fair for everybody rich and poor, wealthier or low-class alike.

Their were poor people in Bible times, Abraham had a slave who loved him and never wanted to leave him. Why? God make provisions in the law covenant for the poor to be taken care of and not taken advantage of. I remember gleanings from farmers when I was young. I also remember when they kick us off and paid workers to pick up gleanings. We survived and live off what we had, fresh gardens and low farm pay.

Well, Since then I discern and observed through life experiences that poor folks not consumed with getting rich needed to fend for self with what crumbs left by the wealthier. I remember when it became criminal offense deserving of jail time for any one dumpster diving. For goodness sake, It was trash filling the landfills, the wealthy didn’t want them any way. I remember men sitting by trash can outside a store that went out of business stopping people from getting things out of the trash. Saying it was sealing to do that. When I was a lil child, we got our first television from the dumpster. In my late teens I got my first brand new hair dryer from dumpster. The unwanted items the poor see as treasures get sold at flea markets by poor trying to eat and pay bills. And some wealthy who don’t need help just their to make it hard for those they look down, then got nerve to say get a job. I was and still is the most un hirable person I know. I survived my kids growing years as an entrepreneur selling what I could with my creative talent.

We live in a new era where people live off credit and not money. Where people who made a living before the recession now depends on soup kitchens set up by churches just to eat, move in with already struggling family members for shelter. Some people live debauched lives to get by. The health care system is a travesty. The working class making low wages paying extremely high premiums, increase co-pays, outrageous deductible for services they can’t get access.

Now this, calling bad debt earned income credit. The middle class keep falling, the poor class live at rock bottom and charity givers try to build a stairway to heaven. I’m all for helping those on skid row, but what about those sitting in their homes not getting the help they paid into as productive members of society working so ungrateful can live a life better than their parents had and the wealthy can live high on a dime, and

Read more about this at Credit Card.com

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