If you make a settlement on a debt you owe do you do you have to claim it as taxable income.?

I made a settlement on a debt that i owed($2600 dept i paid $1300)I have not received a 1099 as of yet from the credit card company.Do i still have to declare this on my taxes.

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  • 1 decade ago
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    It is taxable income UNLESS you were insolvent on the date of settlement. Insolvent means you owed more than your assets were worth.

    You likely WILL get a 1099-C. The company has a few more weeks to send them out.

  • 1 decade ago

    Yes...

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