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purplelace55
New Member

I am in a debt relief program. Do I need to report this to the IRS? Can it be written off? Can I still file my taxes on turbotax?

 
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DDollar
Level 7

I am in a debt relief program. Do I need to report this to the IRS? Can it be written off? Can I still file my taxes on turbotax?

There is nothing to report to the IRS regarding your debt relief program, unless some of your debt is forgiven.  In that case you'll receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.  If you receive on those, you will have to report the forgiven debt as income.  And YES, you can still file your tax returns using TurboTax.


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DDollar
Level 7

I am in a debt relief program. Do I need to report this to the IRS? Can it be written off? Can I still file my taxes on turbotax?

There is nothing to report to the IRS regarding your debt relief program, unless some of your debt is forgiven.  In that case you'll receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.  If you receive on those, you will have to report the forgiven debt as income.  And YES, you can still file your tax returns using TurboTax.


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