Jump to content

Reporting Cancellation of Debt on State Tax Returns?


Recommended Posts

I had a talk with a CPA who told me that filing of 1099C information, even under the insolvency end of things also needs to be reported on you state taxes, or amended taxes if you amend.

 

I have not read anything anywhere about this but have since read from my state that there are definite rules to follow to do this, and it is expected.

 

I am referring to the state of PA. While PA does nopt collect taxes on forgiven debt it still needs to be done......!

 

Has anyone done this or know about it?

 

Also, wonder now about the local taxes,

Link to comment
Share on other sites

I just searched iowa.gov and while there are many references to 1099c in regards to federal income taxes, there doesn't seem to be anything regarding iowa directly.

 

I'm going to say that like all income taxes, its up to your state and your locality. 

 

ETA:  I use TurboTax.  I just searched their help and found a reference that says in Massechetts (sp?), forgiven debt is taxable...so, again...probably depends on the state.

Link to comment
Share on other sites

It depends on the state. Minnesota for example simply takes the net income figure you used to determine your federal tax and then do any add back where they do not align with the federal standards. We are also required to send in a copy of our federal forms with the state forms.

I would suggest asking this CPA where this is suppose to go. If that does not help, contact PA Revenue and I am sure they can lead you in the right direction.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.