Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

allhalegabrielle asked:


I received a 1099 debt reduction for the first time, and i truly don’t know what to make of it. Is it going to hurt my federal tax refund or help it. Could someone please explain it so I can understand why I am receiving this and what it means. Thanks a lot!

Darron Venuti

jcai asked:


1) Despite reaching 62% of GDP in 2003, the national debt in the United States isn’t a huge concern for some economists and policymakers.
1a) Some economists believe that one of the reasons not to worry is that the bulk of the public debt is “internal national debt”–the portion of the national debt owed to a nation’s own citizens and institutions.
Why isn’t the portion of the national debt owed to a nation’s own citizens and institutions a large concern?
A. Because the government can collect money from its own citizens anytime
B. Because an internal national debt does not affect economic growth
C. Because future generations always can shoulder the debt burden
D. Because paying internal debt is a matter of income redistribution, so overall purchasing power in the economy doesn’t change

1b) Which of the following is a reason why the U.S. government need not worry about going bankrupt?
A. Because the United States is an ally to most countries in the world, it never has to pay off the debt.
B. Governments remain solvent so long as they keep their debt as a percentage of GDP below 100%.
C. The government can refinance the public debt easily and has the authority to collect taxes.
D. All the public debt is held by U.S. citizens, firms, or government institutions.

2) Crowding out occurs when:
A. An increase in the tax rate leads to lower tax revenue
B. The public debt drives up real interest rates, leading to a reduction in investment spending and a lower future capital stock
C. An increase in taxes reduces the incentive to work and lowers real GDP
D. Investment spending drives up interest rates, discouraging government borrowing

Thanks

Carol

elijahtheprofit asked:


Hello! I refinanced my mortgage to take advantage of a 5% reduction in principal, approx $20K. This in an investment property so I understand that this would be a taxable event. I am wondering if I sell the house (owned for 3 years) this year for a $20k loss, would the two cancel out? Many thanks in advance!

Coy Mo

JP asked:


I filed ch 7 bankruptcy in 2009 and although the discharged debt isn’t considered taxable income, I’m unsure whether there are any other tax implications. Specifically, I’ve read about IRS form 982 (reduction of tax attributes on discharged debt) but I’m not sure if I need to fill that out or not? I haven’t received any 1099-C’s or anything and I understand that’s as it should be. The discharged debts were 2 credit cards and a couple small medical bills. I have minimal assets and I rent an apartment, if that matters. My taxes are really simple to do otherwise ( one W-2), but if I have to fill out form 982 and make reduction of tax attribute computations then I’d rather take it to a professional. I would just take it to a pro, but I’m on a very low income and would hope to be able to do it myself. Thanks in advance for any help.

Pat

Evan Navarre

Florencia F asked:




Dana Sabin

mrsthomas_4life asked:


Hello I have a question me and husband got our rebate notice on saying to expect our payment on June 6 and on the back it says under review it says “Your calculated stimulus payment is before reduction for certain outstanding non tax debt you owe such as past due child support or student loan or delinquent state income tax obligation. It says if its reduced we will receive a second notice but we dont own anything like that so i was wondering was that on the back of other notices also or to on someone’s that doesnt owe anything either. I need serious answers only please Thanks

Karen

annabanana4883 asked:


I’ve been filling out the tax forms, and I worked as an independent contractor last year AND had a different job using a W2. I’ve figured out the taxes for the W2 job, and I think I’ve completed the taxes for the independent contractor job (using 1099-MISC and Schedule C). I’m just wondering it there are any deductions that can be applied to the self-employment tax. I’ve already made my deductions on business related expenses (car expenses, supplies, unpaid debt owed to me), but I was wondering if there’s anything else. I am eligible for the Lifetime Learning Credit, but from what I understand, that’s only deductible for the W-2 job.

Is there a way to claim dependents or exemptions from self-employment tax? I have two exemptions. If not, why is it that self-employment tax doesn’t use exemptions?

I know it’s a lot of questions…just trying to figure things out. Thanks!
The instructions provided by the IRS says to deduct any unpaid debts owed to you. Once they are paid, you add it to your income in the year they are paid IF paid.

Young Trostle

Flywheel asked:


I’ve read the economic goals of libertarians and fiscal conservatives, but it’s occurred to me that not all of the goals are mutually inclusive.

For instance, it’s possible to enact a flat tax and lower everyone’s taxes…or you could enact a flat tax and raise everyone’s taxes.

Which of these goals matter the most to you, from highest to lowest?

Debt Reduction
Flatter Taxation
Less Spending
Less Taxation
Lower Budget Deficits
Simpler Tax Code

Kelsey Hoxworth

Boyz asked:


Example: 4 personal credit card loans settled within weeks of each other with a total forgiveness of approx $45K. Insolvent (total assets less total liabilities) by $ 82K (negative) 1 day before and still insolvent by no less than $52K (negative) after any of the forgiven debts. Checked box 1b and entered $45K on line 2. What do you need to calculate for line 10a in Part 2 since the degree of insolvency is still greater than the forgiven debt before and after? What is done with the value for line 10a? Is it advantageous to have a larger value or smaller value on line 10a in relation to the amount of forgiven debt?

Ione Yammine

sentravq asked:


Hi i got a cancellation of debt in the mail for 924$ from a chase bank(credit card). I was just wondering is there a consequence for this(like tax reduction, tax penalty, etc)? Will this further hurt my credit. Also this year i am making alot more money(50% more). All i know is that i have to file this a income so they can tax me, right. Will be there a tax consequence. I am planning to buy a car in about 2 months will this hurt me. Also can the creditors come back and try to collect after i pay tax on the 924$. Please give me insight to this thank you!

Adam Macias