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One more week until Tax Daytime. Have you filed yours yet? I haven't (probably should aboard that, actually), also using the I read in USA Today that roughly 47% of Americans won't even need to worry about paying federal income taxes, I start to wonder if I would even bother. Oh sure, there's the threat of prison time for tax evasion, but really, what's the point if half the damn country isn't going invest up and log off scot-free?
In the above scenario, you just saved $7,500, but the internal revenue service considers it income. If the amount is passed $600, the creditor is needed send that you form 1099-C. How could it possibly be income? The internal revenue service considers "debt forgiveness" as income. How exactly can you out of skyrocketing your taxable income base by $7,500 this particular settlement?
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