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Do you have to pay taxes on 1099c?
A 1099-C is a cancellation of debt form. The technical answer to your question is yes, however, under certain circumstances you may be able to avoid paying by showing insolvency, like in the case of a foreclosure. A 1099-C applies when you borrowed money, since you were expected to pay it back then in that instance you are not required to pay back. When the situation arises and you are unable to pay the debt, the lender has to cancel the debt, however, at the time the debt is cancelled the amount you had borrowed becomes income since you are not going to pay it back. In that case, like almost all income it is subject to income taxes. There are exeptions, like in the case of a foreclosure, however, you have to qualify. To figure out if you qualify it is imperative that you check with an excellent accountant or someone that deals with tax liability (i.e. Enrolled Agent) and understands tax law. Hope this helps. Roger Hadad, Effectur Inc., www.irs101.blogspot.com
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Distributions from your 401K after you reach your retirement age the taxable amount will be subject to federal income tax at your marginal tax rate and may be subject to some …state income tax.
Answer One of the still remaining, best aspects of Life insurance, (the investment aspect of which has been generally agreed to be poor at best) is that the… insurance industry has gotten congress to retain that payouts of life insurance to a beneficiary are NOT TAXABLE. That is also why one should always have their insurance policy payable to a specific beneficiary...it passes very quickly, directly to them, out side of the estate and being outside the estate, is exempt from income estate/inheritance and transfer taxes. (If you make yourself or your estate the beneficiary, you would lose the last advantage,as it would become part of the estate). citations: Amounts received under a “life insurance contract” , that are paid by reason of the insured's death aren't included in the gross income of the recipient (i.e., beneficiary) ( Code Sec. 101(a) ) (unless the policy was transferred for value). The exclusion applies to lump sum payments made at the time of the insured's death, and to amounts paid later to the extent the payment doesn't exceed the amount payable at death. ( Reg § 1.101-1(a)(1)
Un-answerable. (first by "you" I suspect you mean "everyone"). All taxes are paid by someone, or something (a company for example). But not everyone pays all taxes, certai…nly not all the time. What taxes are paid depends on what you define as taxes, who, what, where you are and what your doing..as well as many other things. (For example...you could well pay "death" taxes...that is taxes due upon the transfer of your assets on death...but it seems true, you'll only pay those once, and only if you have assets of the type and amount that these taxes apply to). Change the request to "How many citizens of Wisonsin pay state income tax?"
See the "Grace Commission Report". The report said that 100% of what is collected is absorbed solely by interest on the National Debt, and by federal government contribution…s and transfer payments. In other words all individual tax return revenue is gone before one nickel is spent on services that taxpayers expect from their government. These services are funded by new loans made by the Federal Reserve to Congress. Another Perspective Taxes pay for government programs the help people, government programs that support research of all kinds, education at all levels, early intervention programs, medicare, social security, public libraries, hospitals, roads, bridges, school buildings, parks, neighborhood clinics, medical assistance for the poor, education grants and loans, snowplowing, water systems, sanitation facilities, waste- collection and disposal, fire departments, police departments, CIA, FBI, IRS, ACE, FEMA, national parks, teachers, military, defense, military bases, build and maintain, government facilities, foreign aid, federal census, food stamps, judiciary, state and federal courts, and so many other necessary and unnecessary things.
A 1099c is issued to a debtor and to the IRS when a debt has been canceled (or forgiven). Once a debt has been canceled (or forgiven) and a 1099c issued to the debtor and IRS,… no further collection attempts shall be made. If they are, then the debt has not been canceled (or forgiven) and no 1099c should have been issued to the debtor or to the IRS. note: website: www.helpwithmybank.gov (under consumer loan-general questions section) which states that unless the bank forgave or cancelled the debt, you are still obligated to repay the loan. Also the IRS states that continued collection, the existence of a lien relating to the debt, or the sale of a debt by the creditor are direct indicators that a debt has not been canceled. note: website: www.IRS.gov pubication 525 and instruction for 1099ac for further info. The only entities that can issue 1099c are financial institutions (bank, trust company, building and loan or saving and loan associations), credit unions, federal govenment agencies, federal deposit ins. corp., resoulution trust corp, national credit union admin., any military dept., u.s. postal service, postal rate commission, a corp. that is a subsidiary of a financial institution, or an organization whose significant trade or business is the lending of money, such as a finance co., or credit card co. The average person or company not included in one of these entities can't provide a 1099c to a debtor or the IRS irregardless of monies owed to them by a debtor. A 1099c can be issued on an unpaid debt for the entire balance that is due at the time of issuing the 1099c or for the canceled portion of the debt when a debt settlement has been agreed to. Example: $5000 owed, debt settled for $2000, debt canceled is $3000. This $3000 would then be on the 1099c. Since you didn't have to pay this $3000 to the creditor the IRS considers it to be income to you unless you qualify under a few exceptions like insolvency, a dismissal of the debt in a bankruptcy filing, or it was a gift on behalf of the creditor. See above IRS website for more info. Any entity issuing a 1099c to the IRS must send a copy to the debtor. A 1099c doesn't show up on your credit report and you wouldn't know unless they sent you a copy of it as required by IRS laws. You can call the IRS to see if they have received one for you if you have concerns that they have. You can call the creditor and ask if they issued one. They must tell you and keep these records for 4 years from time of issuance according to IRS law. IRS law and banking laws govern this. Also, a charge off and a write off are different from a 1099c. A charge off or write off (pretty much same thing) is done for creditors internal accounting procedures and do not release your obligation to pay a debt nor does it prohibit creditor from sending account to collections agency or selling account to debt buyer. Charge off's (write off's) does not require a creditor to issue a 1099c to debtor because they are not releasing you of your obligation to pay the debt nor are they given up their rights to collect on the debt but they are merely making an accounting adjustment on their books. Nor can a debtor demand a 1099c. Why? Because a creditor that issues a 1099c to debtor is thereby canceling the debt and not requiring any further payment on the debt and will no longer try to collect on the debt as of the date of the debt being canceled (which is shown on the 1099c). If you are contacted for payment on a debt that has been been previously canceled because you have received a 1099c reflecting such you should provide copy of 1099c for proof and assert you knowledge of the law and refuse to pay anything further and demand no further collections be made. All of this should be in writing and sent certified mail to company trying to collect. Keep copies of all for proof. If you are contacted again call a consumer lawyer in your area. They are just waiting for a good lawsuit to file and work on a contingency basis so you will not need money to hire them. Also, if you have been through bankruptcy or in process of, all your debts should be listed and eventually dismissed by bk court. When debts are dismissed through bk you no longer owe them and they are not taxable to you. Send any further collectors this information in writing with bk case number and 1st page of bk doc and demand no further attempts to collect be made. Put in writing and keep copies and certified mail for proof. If attempt is made again call consumer lawyer. If you have any problem with IRS and 1099c after bankruptcy send IRS letter and copy of 1st page of bk doc. If lawyer handled your bk then they should handle any problems that arise after.
No They do not make money and so they do not have to pay taxes. All of there needs are satisfied by the church.
You can have some income tax withheld from the distribution amount are you can choose to make some quartely estimated tax payments or you can wait until you file your income t…ax in the next year after the year that you receive the distribution amount by the due of your income tax for the previous year return and pay the full amount of taxes at that time. A calender year taxpayer the due date for filing and paying any amount owed would be April 15 of the next year
Bahrain, Kuwait, United Arab Emirates, and Saudi Arabia, north korea.
I assume that this question is about an income tax refund, and not about an income tax return (which is the form you file with income tax authorities every year, along with an…y income taxes you still owe.) A Federal income tax refund is not taxable income (for state or Federal purposes) in the year a taxpayer receives it. A state income tax refund for a previous tax year, however, may be another story. It will be Federal taxable income in the year in which the taxpayer receives the refund, if he itemized deductions on the previous year's Federal income tax return. Suppose a taxpayer files his 2010 Form 1040, and itemizes his deductions. Following the instructions for the 1040, he deducts $500 withheld as state income tax (shown on his W-2) in computing his 2010 Federal taxable income. He then prepares his state income tax return and discovers that he owes only $435 in state income tax, and is due a refund of $65 (the difference between the $500 withheld and his actual liability of $435). His actual state tax liability was only $435, but he had deducted $500 from his 2010 Federal taxable income, so when he gets the $65 refund in 2011, he must include it in 2011 income for Federal income tax purposes to make up the difference. However, if the state refund was for a tax year for which the taxpayer did not itemize deductions on his Federal tax refund (i.e., he took the standard deduction), it is not taxable income to him.
We have to pay taxes because the government needs to pay for its various functions.
WE PAY TAX TO THE GOVERNMENT SO THE GOVERNMENT CAN USE THE MONEY FOR BUILDINGS, PUBLIC SERVICES, SCHOOLS AND NEED. WE PAY THE MONEY TO THE.............................….......................................
as per the indian government who is earning above 15k as net salary or net income they will have to pay the income tax
no not at all alternative view A tax refund is absolutely dependent on if more money was paid in (through payroll withholding or estimated payments ever quarter - …as required) compared to what the return shows as actually being owed after all accounting. Many people get refunds (who have paid in and then owe no tax actually)....and many people have to pay additional tax. Also, many people with no tax liability and no payments in actually get benefits back, in the form of Credits and Federal support, (like the earned income credit, and others).
Answer You mean you received a 1099C right...you had (cancellation of debt)income because you had a bankruptcy or failed to pay what the persdon issuing it to you… had loaned you. In any case, no matter what the circumstances, the facts haven't changed....just the name of who you owe that debt to. That doesn't change anything about your accounting, taxability or reporting obligation.
That depends on the laws of the country in which you live.