filing taxes after chapter 7

[HGolightly]

There are no tax implications to debt discharged in bankruptcy. You should not receive any 1099's for such debt discharged.

Why go to H&R Block to file? You can file for free online at several places.

Hey! I work for H&R Block!

MrJames is most welcome to continue having his taxes done by H&R Block!

[Meatstick]

Not that it matters but I used TaxAct and submitted my return. Got a confirmation back that IRS not accepting/processing returns until 1-18-10. I thought by the IRS website that they accepted them starting today 1-15-10 ?

[HGolightly]

Yes, it was supposed to be today. Guess they're running behind...

[helpmeout]

hmm not sure..I have used H&R block for several years..I guess because its simple and less of a hassle on my end?

I used H&R Block a couple of times. Found that they made too many mistakes. So I do my own taxes. They really aren't that complicated for most people. And for the people that it is complicated for, they really should consult with a CPA and/or tax attorney.

[huntersmommy]

got one too

we are set up to file our taxes on Monday afternoon. Well today in the mail I receive a 1099-C from our ex bank for a debt of $3,581.37 that was included in the bankruptcy. At the top of the form it says "This ins important tax information and is being furnished to the internal revenue service. if you are required to file a return, a negligence penalty or other sanction may be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported.

Are all the other companies on my matrix going to be mailing these out too? From what I read it only implies that if I made any money off the amount that was discharged would I even have to worry about it and seeing as how it was discharged there was no actual money that I got so is this just irrelevant? It says right on the form that the fair market value of the asset is $0.00. Did they just mail it because they technically have to? Ugh....and I thought it was all over now

Should I reschedule our appointment in case there are more of these things coming or what?

[NewDawn]

Was the debt discharged credit card debt? If so, just fill out IRS Form 982 and check off the box pertaining to bankruptcy. The bankruptcy protects you from having to pay any income taxes on the discharged debt.

As far as waiting for other 1099s to come in, maybe it would be safe to wait at least a month instead of having to amend your tax return. That's what I'm going to be doing. You could also call your creditors to see whether or not they are going to send one. I personally dislike the fact of having to amend my return, so I'm going to a wait a little bit to be on the safe side. It's your call.

I strongly encourage you to read the thread "Received 1099-C after discharge." I have read in other threads that BOA and Capital One send 1099s, even after discharge. HHM recommends filing Form 982 instead of trying to hassle with the bank to try to correct the accounting error. There must be a reason the IRS chose to include this option for tax filing purposes. By filing this form, you will clear up the matter. Not only that, but once the creditor sends a 1099-C to you, the IRS will be looking for you to report it. Don't worry. After your fill out the form, that amount wil be EXCLUDED from your taxable income.

But please don't just ignore it because the debt was discharged or that you didn't receive any income from the transaction. Some creditors still interpret it as "forgiven" debt, which is imputed income. It will all be resolved by simply filling out the form correctly. Simple as that.

[NewDawn]

Actually, the thread title is "Received 1099-C for Discharged Debt."
Sorry, my mistake. Another thread that is very informative is "1099-C How Would I enter this into Turbo Tax?" That thread answers quite a few questions as well.

[gogetter76]

Thanks Ohiofiler..............

I agree there are many FREE ways to file on the net...WHY PAY?

[huntersmommy]

Thanks for the info : )

[Meatstick]

I just now received an email that our Fed/State returns have been accepted by the IRS and Arizona Dept of Revenue.

We are filing the first week of April so now we will have to find a way to spend down $9000 or bring a nice fat check to our 341.


Meatstick