Author Topic: 1099-C and Student Loan Forgiveness  (Read 1201 times)

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Gidget200

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1099-C and Student Loan Forgiveness
« on: January 31, 2013 03:46:15 PM »
I am very new to this Forum so here goes. I recently had my Student Loans discharge as of July 2012. I did not know they were going to issue me a 1099-C for the whole amount and interest that was forgiven . I thought this would occur after the 3 year monitoring period. Here are my questions below hopefully someone will be able to answer me?

If you fill out IRS Form 982 and you are insolvent, does this release you from paying taxes on the 1099-C (student Loan).

On the 982 form do you fill out what is owed on the date of the discharge which was July 3 2012?
Or do you fill out the form according to the year of 2012?

I had to leave my employer because of illness in 2010 and now receive a disability retirement income (very small) and SSDI I am also losing my home. So of course I can not afford to owe the IRS I just do not have the income. Any help with be appreciated.

silverzgirl

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Re: 1099-C and Student Loan Forgiveness
« Reply #1 on: January 31, 2013 09:08:11 PM »
982s are filled out to the date of the 1098; they base it on the solvency at that date.
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

AXXEL

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Re: 1099-C and Student Loan Forgiveness
« Reply #2 on: January 31, 2013 09:13:09 PM »
I am very new to this Forum so here goes. I recently had my Student Loans discharge as of July 2012. I did not know they were going to issue me a 1099-C for the whole amount and interest that was forgiven . I thought this would occur after the 3 year monitoring period. Here are my questions below hopefully someone will be able to answer me?

If you fill out IRS Form 982 and you are insolvent, does this release you from paying taxes on the 1099-C (student Loan).

On the 982 form do you fill out what is owed on the date of the discharge which was July 3 2012?
Or do you fill out the form according to the year of 2012?

I had to leave my employer because of illness in 2010 and now receive a disability retirement income (very small) and SSDI I am also losing my home. So of course I can not afford to owe the IRS I just do not have the income. Any help with be appreciated.

Date of discharge.  It should tell you on the instructions.

Nice job receiving your school loan forgiveness.  That's not easy to do.  How did you accomplish this?  Bankruptcy?

Gidget200

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Re: 1099-C and Student Loan Forgiveness
« Reply #3 on: January 31, 2013 10:18:17 PM »
I did not receive a notice of discharge formally only the 1099-C in the mail this week. I was told by Nelnet that I would be monitor for 3 years then the discharge would occur. But of course that is not the case here so if I am understanding this correctly my assets and liabilities should be for the date of the discharge of the loan?

I had a very good Physician who filled out the forms correctly for me. I was very ill before I left my employment in 2010. I was very lucky really and I believe the SSDI judge's ruling was helpful as well. 

 

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