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Tax ?


almost_there
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I need some help....I usually file my own taxes. I use TaxAct.com and filed my Federal return already, already got the refund. I waited to file my state return because we owe $ and I wanted to put it off until it's due, which is next week. I am going on vacation Tuesday, so need to send it off before I leave (my husband wouldn't have a clue to do it LOL)

So here's the issue...last year we lost our home, went from Ch. 13 to Ch. 7. When it was time to get all our tax info. we had nothing from the mortgage companies regarding the loss (1099-A) and went ahead with our tax prep and filed the Federal. Then about 2 weeks ago, around the end of March, we got the 1099-A from the 2nd mortgage company. It states we are not liable for the repayment of the debt. We've gotten NOTHING, nothing, from the 1st mortgage company - not even anything regarding the sale of the old house!

Anyway -

Do I need to amend my Federal return? Can I file my state and amend both at a later date, when I'm not so crunched for time? This shouldn't impact us as in owing more, because of the bankruptcy, right? Is there a penalty to the mortgage company for not sending this sooner than the end of March? I'm just so frustrated that they didn't send us the 1099 back in January when everyone else had to get us the info. because this is just confusing to me. My hubby wonders if we even need to include it in our taxes because we aren't liable for the repayment of the debt, but somehow I think the IRS might not see it like that! :shock:

I would really appreciate any help/advice anyone might have. Thanks in advance!

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My hubby wonders if we even need to include it in our taxes because we aren't liable for the repayment of the debt, but somehow I think the IRS might not see it like that!

yep, your right. The IRS likes to see everything. EVERYTHING!!!

I go through the worst tax situation every year...pay several states, rent forms, extra pay, etc......

We use to stress every single year for months over taxes. Then last year we found a wonderful CPA. whew......stress reliever. Well worth the 175.

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Don't rush to amend your federal return without knowing the exact amounts. If you have not received a 1099 from the first mortgage company yet, you can get this information form the IRS. You can call their 800 number and order a Wage and Income transcript for yourself & spouse for 2008. It will take 1 to 2 weeks to arrive, so you should also talk with the customer service rep you speak with who can go over the amounts with you right there on the phone.

You could just go ahead and file your state return now using the information from your filed federal return for the moment. States do not have access to your W-2 and 1099 info like the IRS does, but they can verify that the adjusted gross income matches what is reported on the federal return. This way your state tax return won't be late.

You owe taxes on all 1099s, even if you no longer owe the debt to the mortgage company. But after you know the amounts, you can start to determine if your tax on the 1099 can be reduced or not. That will depend on your financial situation at the time the 1099 was issued. If your debts exceed your assets, you can get the taxes on the 1099s reduced to 0.

If you leave a W-2 or a 1099 off of your tax return, the IRS may send you a Notice of Proposed Increase in Taxes which you will have a chance to dispute. If you don't dispute the amount, they will just send you a bill for the increased tax amount. That is, unless you file an amended return yourself or file a form to apply for tax reduction on the omitted 1099s.

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