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Revision as of 05:45, 22 August 2026
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In the above scenario, that you have to saved $7,500, but the government considers it income. Generally if the amount is passed $600, your creditor has to send just form 1099-C. How is it income? The government considers "debt forgiveness" as income. So how can an individual out of increasing your taxable income base by $7,500 using this settlement?
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