Do I have to pay taxes on a credit card settlement?
Question : Do I have to pay taxes on a credit card settlement?
I made a settlement with my credit card company and last year i had to pay taxes on it. This year will be the last credit card I settled on…it was less than $ 3,000 so do I have to pay taxes on that still?
credit card settlement
Best answer:
Answer by ToYsTeMpTer
if you settled for under the amount you actually owed then yes you will have to claim the difference as income
If they show a cancellation of debt, they’ll send you a 1099-C and it will be taxable income.