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Do I have to pay taxes on the amount written off when I do a credit card debt settlement?
Wiki User
∙ 13y ago
Yes, the difference between what you owed the credit card company and what they settled for are normally taxed. This can vary in certain instances, so it is ideal to check with a tax attorney about your specific case.
Wiki User
∙ 13y ago
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Will a settlement of my credit card debt affect my FICO score?
Yes, any time you fail to make payments or settle a debt, it will affect your credit. You will also have to pay taxes on the amount written off! Yes it will effect your score. It is usually easy to get creditors to except a settlement amount but that can be looked upon badly with new creditors in the future.
What tax credit will reduce the amount of taxes you owe?
Child tax credit
What's An amount you subtract from the amount of taxes you owe is called?
tax credit
Paid cash for your home 119271.71 where does this amount go on your taxes for 2007?
Purchasing a house is not tax-deductible.You can deduct mortgage interest (which you do not have) and property taxes. If you received a property tax credit from the seller, which appears on the settlement sheet from your closing, you must net that against any taxes you paid during 2007. If there was any credit for taxes due in 2008, net that portion of the credit against property taxes you pay in 2008 to figure your deductible portion.
What is credit card settlement?
Usually, a credit card settlement referes to a situation in which the cardholder can't pay the monthly bill or the reduce the balance. Occassionally, the credit lender will agree to a one-time settlement in which the carholder pays a reduced amount of the balance. A credit card settlement, though, will be reflected on your credit history and is looked upon unfavorably. that is true--but it is better than the company charging off the account. also if you settle for less than 60% they can turn around the next year and send you a 1099 for your taxes to make you declare it as income. SO if you must settle make sure that you don't fall into this.
If you try to accept a settlement offer from a creditor after the expiration date can they deny you the settlement amount and garnish your wages?
Yes, they can. Hoever, they can only garnish 25% of your pay after taxes.
What was the unified credit equivalent amount in 1971?
There was no such thing in 1971. The amount eligible to be gifted was $30,000 and the amount free from estate taxes was $60,000. It was not until 1976 that these amounts were combined to create the unified tax credit of $90,000.
Do i file for homebuyers credit even if i dont have any taxes to file?
If you meet all of the rules to qualify for the homebuyers credit YES. The FTHBC is a Refundable credit and when the credit amount is more than your total income tax liability, the excess amount will be refunded to you.
Do you pay taxes on the settlement of loss of wages claim?
Yes this is very possible because the amount is replacing wages that you had not yet received and paid any income tax on yet. So the amount will be subject to income taxes in the year that you receive the amount of lost wages.
Do you have to pay taxes on a vioxx settlement?
Typically you do not have to pay taxes on personal injury settlments. Adding taxes into the equation of a specific settlement amount would be too difficult. For instnace, if an injured person is given a settlement for medical bills that comes out too little after taxes, it would have to be re-worked. Only smaller things can be taxed after a court case such as punitive fees assigned by the court or accrued interest. The law article below goes into more details regarding taxes and PI settlements.
What is the jounal entry to after-the-fact payroll where all taxes have been paid?
Debit - Payroll (Wages) - for the amount of the total gross wages. Debit - Payroll Tax Expense - for the amount of the EMPLOYER taxes. Credit - Cash
Can pay pal report negative account balances to the credit bureaus?
No. PayPal has no agreement with the end-user (you) for reporting to credit bureaus. After 1 1/2 years, PayPal writes off the amount owed for credit on federal taxes. This amount brings them a 70% return on their taxes hence saving them on collections. It all pretty much boils down to after 1 1/2 years - 2 years max, the collections process will discontinue and the amount will be written off. PayPal uses no third- party collection resources or reporting resources to credit bureaus. This is all from the PayPal Terms of Service.
