Q: i am a college student and was doing my taxes online, had a few general questions
im filing from New york
So basically the past year i worked off the books for ca heap wage off campus on a resturant, and so have no W-2 and thats why manually plugging the numbers
my important question is I was scammed a year ago of $3000 and thats why i had to pay my bank back slowly in monthly increments., a few months ago my bank said that i dont need to pay around $650, but theyll report it on my taxes. they told me to call IRS but right now theres no way for me to get in contact with them so i need help
A: According to the IRS, when a debt is canceled, forgiven or discharged, the canceled amount is part of your gross income and you must pay taxes on that income unless you qualify for an exclusion or exception. Creditors who forgive $600 or more of debt for you are required to file Form 1099-C with the IRS.
Jonathan David Warner agrees with this answer
1 user found this answer helpful
I'd recommend visiting the IRS' website and requesting your wage transcripts online. This will give you a fairly clear representation of all the income that has been reported as earnings. If you are uncomfortable doing so on your own, consider discussing this matter with a tax preparer or attorney.
Good luck with your case!
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