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.

1 Answer

  • 1 decade ago
    Favorite Answer

    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


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