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My friend is married and his wife receive disability social security while he is earning $14000 yr with Walmart.
Anonymous3 views3 answers
. He’s wife is unable to work because she is on disability. She was a student before she married him and she was getting Federal Loans. Last year last year he Federal Loan was discharged/forgiven and she got a Form 1099c in the amount of $46000.They are living in a rented apartment . They own nothing except a old car nissian 2002 which her husband uses daily for work. She also filed bankruptcy Ch7 back in 2011 which she got discharged for. My question is if she is able to get rid of all or partial amount of this tax due on the mentioned forgiven loan and how. There are some provisions what are they, plz guide me in this case
First of all, this is a tax question, not a Social Security issue, so I have changed your practice area to conform to your question and atreact the attention of attorneys who practice tax law.
Forgiven debt, as a general rule, is taxable as income and is reported to the IRS of Form 1099C. The tax code, however, excepts some kinds of 1099C income from taxation. Form 982 is filed by the taxpayer to assert the right to the exception(s). Find accurate information about the use of Form 982 at www.irs.gov.
Best wishes for a favorable outcome,a nd please remember to designate a best answer.
Hi,
I'm not really sure anyone could answer your question here in a way that will appease you. That is, all of this is very specific to the facts and circumstances and you are not even the person that is the subject here. The IRS has many ways of dealing with this situation and where one may offer to compromise something another will not achieve the same deal.
If you have your own personal legal or tax issues, please consult a local professional to explore all your options.
Best regards,
Frank
Natoli-Lapin, LLC
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