filing bankruptcy alabama
bankruptcy and filing 1040?
I filed chapter 7 bankruptcy at the beginning of this year. Most of it was credit cards. Will the amount that was discharged be considered income and will i have to pay taxes on that amount when filing my 2006 income tax return. I also reside in Alabama, if that means anything.
Some creditors will send you a 1099 Cancellation of Debt.
http://www.irs.gov/pub/irs-pdf/f1099c.pdf
Check box number 6 indicating the debt was included in bankruptcy. I am not too sure about taxes, but you may have to send a copy of your Discharge Order and a copy of Schedule F or your mailing matrix showing the debt was included. Check with your tax preparer about submitting additional documents.
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