1099c

[Ammz5]

I filed my taxes a week ago, and today received a 1099c for 3,000. I completely forgot this was coming and know I cannot amend yet. Will this affect my taxes in a big way? I have never had this happen before and nervous I may owe a ton. It does not put me into a higher tax bracket either. 

[Bsch4477]

Assuming it is for credit card debt the amount will be taxed at your marginal tax rate. Do not amend until your return has been processed and any tax liability settled. Amended returns can take more than 6 months to process. 

[MinhT1]

This form 1099-C reports a debt cancellation which is taxable.

When you amend you will owe more tax which is calculated at your marginal rate. For example, if you are at the 22% tax bracket, the additional tax would be $3,000 x 22% = $660.

[Ammz5]

Thank you. Is it possible the irs will catch it before i get my refund and fix it? 

[Ammz5]

@MinhT1 

  So 3,000 at my marginal tax rate of 12% would put me owing 360 in? 

[MinhT1]

Yes, you are correct.

[Ammz5]

@MinhT1 thank you so much for your help!