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1099c cancellation debt from Discover Card on account that was charged off 6/08. My income in '08 was $6,096 but just got the 1099c this year. How to adjust to '08?
I made no payments or contact with card company and this has even fallen off my credit report. The issue is Discover card is showing the date of event as of 12/31/17 but I would have benefited from this income in 2008. I have old credit report showing no activity in this card for multiple years how do I address this since its been 9 year now?
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Get your taxes done using TurboTax
It depends on the lender when they issue the form. The debt is considered cancelled once your lender/creditor no longer expects for that money to come and they close their books. Although they normally would have issue the 1099-C earlier, this is the year that they have closed their books on this debt and are notifying you AND the IRS of the cancellation.
There is no amendment or adjustment to make. Simply enter the 1099 as printed and follow the TurboTax interview.
If you are insolvent, here is some good info on that:
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A letter will be sent to the creditor requesting that they furnish a corrected Form 1099 to me within ten days. The letter advises the payer of their responsibilities to provide a corrected Form 1099 and of the penalties for failure to do so.
they would send me a letter that provides instructions and a copy of the Form 4598, “Form W-2, 1098, or 1099 Not Received, Incorrect or Lost.” The Form 4598 may be used in the event that the payer does not provide you with the corrected Form 1099 in time to file your tax return.
Is this still a valid approach for my type situation?
Thank you for your previous response but that would not apply to me at this time, For sure would have if they had filed in the 36 months.