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Tax question

Last year we took a settlement on a credit card. We ended up paying $1,000 less than what the original balance was. They told us we would have to claim that $1,000 as income when filing our taxes this year. I havent recieved anything from them yet but I was wondering where on a 1040A form would that income be put? Or will I have to file a 1040 instead? Which I dont want to do since we dont really have any deductions so its much better to take the standard deduction. Has anyone else had to deal with this?

Answer Question

Asked by Anonymous at 2:26 AM on Jan. 30, 2010 in Money & Work

Answers (4)
  • I never had to claim that on my taxes I did the same and I never claimed it on my taxes. I would call the company and maybe speak with a tax professional.


    Answer by Anonymous at 2:30 AM on Jan. 30, 2010

  • Thanks. I was thinking about calling the IRS on Monday and seeing what they tell me.

    Answer by Anonymous at 2:33 AM on Jan. 30, 2010

  • Call the IRS 1-800-829-1040 - Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

    Answer by rkoloms at 6:20 AM on Jan. 30, 2010

  • You do have to claim it as income. (Just in case you needed reassurance on that).
    Hope you get things figured out!

    Answer by Anonymous at 12:47 PM on Jan. 30, 2010

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