cbneedshelp Posted October 9, 2010 Report Share Posted October 9, 2010 I went to court against a JDB that sued me for $1,012. Original card balance was $500. Ended up settling in court and signed a stip agreeing to pay $500. Will I be issued a 1099 c form for the remaining amount I was sued for? Link to comment Share on other sites More sharing options...
willingtocope Posted October 9, 2010 Report Share Posted October 9, 2010 Since the difference was less than $600, you probably won't get a 1099...but...you may still owe taxes. Link to comment Share on other sites More sharing options...
cbneedshelp Posted October 9, 2010 Author Report Share Posted October 9, 2010 Can you clarify why I would still owe taxes? I'm paying $500 and the original cc amt was $500. The added amount was fees, interest, etc. Link to comment Share on other sites More sharing options...
willingtocope Posted October 10, 2010 Report Share Posted October 10, 2010 That's why I said "may". In theory, you don't owe taxes on the interest and penalty, but you may need to prove which is what. Link to comment Share on other sites More sharing options...
cbneedshelp Posted October 10, 2010 Author Report Share Posted October 10, 2010 Thanks for your reply. I guess what I'm wondering is this...even if I don't receive a 1099c form, am I still supposed to be listing this settlement on my 1040 federal tax form? I keep hearing conflicting info. Some folks say you need to list the settlement difference regardless, while others say not necessary. Link to comment Share on other sites More sharing options...
willingtocope Posted October 10, 2010 Report Share Posted October 10, 2010 Whether they send you a 1099 or not, they will file paperwork with the IRS. Its hard to tell what they will report. You can take your chabces and ignore it, or file the $500 income. Link to comment Share on other sites More sharing options...
RebelLady Posted October 10, 2010 Report Share Posted October 10, 2010 If it was me, I'd play it safe and file the $500.00. Then, if they fail to do so, its on them, not you.RL Link to comment Share on other sites More sharing options...
Recommended Posts