Frequently Asked Questions & Resources

Sort through our frequently asked questions to learn more about your debt and our debt relief program.
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Will I Have To Pay Taxes On The Amount Listed On The 1099c?

If you recently received a 1099-C in the mail from a creditor, you may be wondering if you will have to pay taxes on the amount listed.

Often, creditors will report the amount of a debt forgiven to the IRS. The IRS considers forgiven or canceled debt as income. This may happen to you after resolving a credit card debt or if you have a debt that has been charged-off or forgiven by the creditor. If this is the case, you may receive a 1099-C “cancellation of debt” notice. This most usually happens when your creditor and you make a settlement for at least $600 less than the original balance. In this scenario, the creditor is required by law to file the cancellation of debt notice with the IRS.

If you receive this form, don’t panic! It may not affect you. It is hard to determine whether you will be affected by this or not without discussing it with a certified tax professional. For example, you may be insolvent. This simply means that the amount of debt owed is more than the total of your income and wealth. Consult a tax professional to find out how settling debts may affect you.

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Why people choose Tayne Law

A debt relief law firm

Personalized Program

Every situation is unique. We’ll work with you to find a solution that resolves your debt and frees up your cash flow.

No-billing
Policy

You make one low monthly payment and will never get an unexpected bill.

Experienced Debt Attorneys

We have more than 20-years of experience providing clients with debt relief.

Confidential & Trusted

As a law firm, our attorneys follow strict client confidentiality. Our services are discrete and effective.

Work with Creditors

We work with all creditors, whether you’re dealing with a collections firm, a national bank, credit union, or another lender.

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