IRS TAX FORM 1099-C After credit card debt settlement?

if i have settled a $1500 credit card debt directly with the bank for only $454.79, what is the purpose of having me fill out a IRS tax form 1099-c? and how will this negatively or positively affect my taxes and/or credit? (i owed $1500, they said i could pay $454.79 and i will be forgiven the ramining balance of $1050.. so of course i payed the 454.79 to get out of debt lol..i didnt use a debt elimination company, i got the voucher directly from the bank.) also, any tips or recommendations you can further give me on this issue? i plan to settle with a few other credit card companies in the same way.

Public Comments

  1. Just remember settling debt rather than paying off in full will still reflect poorly on your credit report. Also the 1099-C is needed because you have to claim the remaining balance of the debt $1050 as income on your tax return.
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