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How Do I Avoid Paying Taxes On A 1099-C?

January 24, 2024 by Emily Lee

How Do I Avoid Paying Taxes On A 1099-C? To establish your right to exclude the money shown on the 1099, you have to file IRS form 982. If you don’t file the form and claim the exception, the IRS has no way to know that, despite the debt forgiveness, there is no tax payable.

Does California Tax Cancellation Of Debt?

January 24, 2024 by Maria LaPaige

Does California Tax Cancellation Of Debt? When a creditor forgives a debt you owe, the forgiven debt is usually credited to you as income for tax purposes. … This is your cancellation of debt income, and it’s taxable unless it falls within five exceptions listed in the Internal Revenue Code, and incorporated into the California