"WD" wrote:

- quote -

Then it's not income. All she does is file the necessary form with her
1040.

--
Phil Marti
Clarksburg, MD

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On Thu, 20 Mar 2008 14:52:24 EDT, "D. Stussy" <spam[at]bde-arc.ampr.orgwrote:

- quote -

The cancellation of debt (1099-c) was in August, the income was in
Sept-Nov. What I read on the IRS web site was "insolvent" at the
time of the cancellation of debt. Make sense (?) or do I need more
of an education ?

Thanks

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"WD" <wd0809[at]yahoo.com> wrote in message
news:rv85u3pd3br35lr5jhscicu1mo59uc9uhf[at]4ax.com...
- quote -

Perhaps the debt cancellation is considered gross income and when added to
her wages results in a total greater than 3,400. If that is the case then
you can't claim her as a dependant.





- quote -

Please delete all unnecessary material from the prior post when responding.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"WD" <wd0809[at]yahoo.com> wrote in message
news:rv85u3pd3br35lr5jhscicu1mo59uc9uhf[at]4ax.com...
- quote -

She's not insolvent. As her income exceeded the debt, she had sufficient
funds with which to pay it off but chose not to. I am intentionally
disregarding living expenses since her total income wouldn't cover those
anyway (and by you declaring her as your dependent, you're paying for her
living expenses anyway).

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

My girlfriend's w-2 lists 2519.70 in wages. 148.91 in Fed
tax

She recieved a 1099-c for debt canceled (automobile loan) of
1761.19.

She has no assets. (bad divorce) I was told she could declare
insolvency, ( by someone in this group) If she met the no assets
criteria. I have downloaded and filled out form 982.
So, is there anything I am missing in this procedure?
Just attach form 982 along with the 1040 and send in(?) or is there
more to it? Also I am assuming I do not show the 1761.19 on the 1040
as it is onform 982.

BTW I have declared her as a dependent, as she lived with me all year.

Thanks for any help

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >