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If the debtor receives a 1099C the amount shown on the form is considered taxable income and must be reported on their federal tax return.

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โˆ™ 2006-03-29 20:51:24
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Q: Do you have to report a settled credit card account to the IRS as income if you own assets and you paid less than what you actually owed and they wrote off the rest?
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Do you have to report a settled credit card account to the IRS as income if you don't own any assets if you paid less than what you actually owed and they wrote off the rest?


What does settled mean on your credit report?

A credit report will show that an account is either active or settled. If the account is settled, it means that it has been paid and is closed.

Transaction for issuing shares in exchange for assets?

[Debit] Assets account [Credit] Share capital account

What is the account entry if an asset is acquired at no cost?

Debit Assets account and credit Capital Account

Why is a capital account has credit balance?

The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital

Does assets account have a debit balance or a credit balance?


How do you record depreciation in a journal entry?

[Debit] Depreciation Account [Credit] Assets Account

Is a liability account a debit or a credit?

Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.

What is the entry for bank loan account?

Debit Bank Account - Assets Credit Bank Loan Account - Liability

If a company purchase equipment on account will the assets increase decrease or stay the same?

If the equipment is purchased on credit (on account) then the net assets will stay the same as the assets will increase by the same amount as the liabilities

Why the ballance of the assets is always on debit side in T account?

Assets maintain a Debit balance and therefore any asset with a positive balance will be listed on the "debit" side of the account. The credit side of the T account for assets is used only to DECREASE that asset. For example Cash is an asset account and it's balance is listed on the Debit side, now your company spends "x" amount of dollars, that entry will be listed on the Credit side to decrease the cash account. If at anytime your Debit side of the asset is less than your Credit side it means that you have a LOSS. For example, you have $1,000 in your cash account and you record $1500 (credit) to the account. Your account will be listed as "OVERDRAWN" and will have a Credit Balance of $500, this of course is not acceptable. A company can never have a higher Credit balance than a Debit balance in their assets.

How long does a repossed vehicle stay on your credit report?

7 years after the account is settled.

How does Credit affects assets?

Credit has no impact on one's assets.

Can a credit card that you had in your personal name but a lien on your corporate business account?

yes. the creditor can put a lien on anything that may be counted as your assets. if your corporate business account is one of your assets, the creditor can try to recover their money from that account.

If you've settled a debt with a credit collection agency can the original creditor buy back the account and try and charge you again?

No ... you have the proof that the debt was settled.

Is a service revenue that is billed but not paid a credit or debit?

A service revenue that is billed but not paid is an account receivable. Account receivables are assets and therefore you would "debit" the account.

Do you need a credit card to open an account at att?

Actually no.

How is date of last activity defined for a settled credit card debt?

The date of last activity for a settled credit card debt is the date that the settlement check cleared your financial institution and was posted to that credit card account. As the account was settled, there would be no more activity on that account. I hope that you have a letter from the agency offering the settlement. Without a letter stating the amount of the settlement, you may have just made a big payment on the debt and someone else will be hounding you for the balance.

What are account receivables?

Account recievable is a account that records the amount should be received . Accounts receivable are the short-term financial assets of a wholesaler or retailer that arise from sales on credit. This type of credit is often called trade credit. Terms of trade credit usually range from 5 to 60 days, depending on industry practice.

What increases an asset account debit or credit?

Assets are a debit account and are increased with a debit. Cash goes up with a debit, Inventory, Accounts Receivable, etc. Any asset account will increase with a Debit.Liabilities increase with a Credit as do Owners Equity.One key note, do not confuse Depreciation with an asset account, it can be easily done as you list depreciation under the assets along with it's corresponding account, depreciation is what you call a Contra-Asset Account.

Is a contra account a debit or a credit?

That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.

Why increasing a liability account with a credit when increasing an asset account with a debit?

Liability has credit balance as normal balance so credit joins credit and increases it while assets has debit balance as normal balance so debit and credit cannot join together like plus plus is equals to plus.

How do you pass journal entries for partner's admission?

[Debit] Cash / bank / goods / assets [Credit] Partner's capital account

What is the journal entry to write off an asset was damage or lost?

debit loss of assetscredit fixed asset account

Does a credit to accounts payable represent cash paid to creditors?

No actually... Cash paid to credits should credit cash account and debit payable account