Comments on: Will I have to pay income taxes on savings after a debt settlement program if income is low? http://www.eliminatedebtdoctor.com/debt-settlement/will-i-have-to-pay-income-taxes-on-savings-after-a-debt-settlement-program-if-income-is-low Find Out How To Pay Your Debt Smarter and Faster by Organize Your Bills & Optimize Your Payment. We Specialize in Eliminate Debt & Debt Consolidation. Tue, 07 Feb 2012 07:47:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: doreen k http://www.eliminatedebtdoctor.com/debt-settlement/will-i-have-to-pay-income-taxes-on-savings-after-a-debt-settlement-program-if-income-is-low/comment-page-1#comment-8582 doreen k Thu, 28 Jan 2010 09:06:19 +0000 http://www.eliminatedebtdoctor.com/debt-settlement/will-i-have-to-pay-income-taxes-on-savings-after-a-debt-settlement-program-if-income-is-low#comment-8582 The amount of forgiven debt will be treated as income and reported to you on a 1099-C. It will be combined with any other income you have and is subject to regular income tax. In all likelihood, you can expect to pay approximately 15% of the forgiven debt in taxes. However if your total income, including the forgiven debt, is less than $5,700 (which is the standard deduction amount), you will not be subject to income taxes. The amount of forgiven debt will be treated as income and reported to you on a 1099-C. It will be combined with any other income you have and is subject to regular income tax.

In all likelihood, you can expect to pay approximately 15% of the forgiven debt in taxes. However if your total income, including the forgiven debt, is less than $5,700 (which is the standard deduction amount), you will not be subject to income taxes.

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