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TO INDEX Will I owe taxes on the forgiven debt amounts?

April 26, 2017amounts debt forgiven index taxes

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TO INDEX Will I owe taxes on the forgiven debt amounts?

1 Answer

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10 Posted

Forgiven debt amounts can be considered income, so owing taxes is possible. However, the IRS allows insolvent taxpayers to exclude cancelled debts, so unless you have a positive net worth, you probably won’t need to pay taxes on your settlements.