Hi, my name is Eric Olsen, executive director of Helps Nonprofit Law Firm. This brief video is going to address the question of what to do if you receive a 1099-C from the IRS, specifically as it pertains to seniors. A 1099-C is a notice given to the IRS and a copy is sent to you from a creditor who has written off your debt as uncollectible. The "C" stands for cancellation. This means that the debt is considered income and in certain instances, taxes may need to be paid on that debt. There are many misunderstandings about a 1099-C, especially for seniors, and especially for lower-income and poor seniors. I want to clarify those misunderstandings now. If you receive a 1099-C, you can file an IRS Form 982 and check 1b, indicating that you are insolvent. This means that your debts exceed your assets. If you are insolvent, there is no tax liability. Additionally, if you have filed for bankruptcy, there is also no tax liability. For most seniors, if their debts exceed their assets, they are technically insolvent and there would be no tax owed. In our experience, if you are not required to file taxes and only receive Social Security, the IRS will likely not follow up with you and ask for any further action. However, if you ever receive a notice from the IRS, you can always file a Form 982 later. Sometimes, when people fill out the Form 982, they may make mistakes. They may not account for all their debts or may overvalue their assets. It is important to accurately indicate your insolvency to avoid any tax liability. Being insolvent means that even if you have $50,000 worth of assets, such as a mobile home, car, and furniture, but you owe a total of...
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982 instructions 2023 Form: What You Should Know
Form 8863 provides instructions on all tax rules and procedures used to claim the American opportunity tax credit. In general, you can claim the credit only if you are a U.S., permanent resident alien of the United States, employed by the United States for an eligible period of time, and you received qualified education expenses from an organization. (This includes the amount of education expenses related to tuition and fees at the time of school enrollment and qualified education expenses related to tuition and fees in the subsequent 3 sees below.) The following table shows if you are eligible to file a U.S. individual income tax return for the tax year ended Aug 27, 2018. Tax Year. In this example, the 2023 tax year ended on Aug 27, 2018. The amount claimed as a qualifying period of qualified education expenses for the education tax credit was paid to IPP Public Charter Schools in Seattle, Washington. The United States Department of Education disclosed on August 20, 2018, that this charter school is a qualified organization. See your local county tax office for more information. Amount of a deduction Qualified education expenses. The education credit can be claimed if: An organization provided you with qualified education or tuition expenses paid to a designated education program of a private, for-profit, qualified education provider. Qualified education expenses. The education credit can be claimed if: A qualified education program of a private, for-profit, qualified education provider. Qualifying period of qualified education expenses. You are a resident of the U.S., qualified in the United States at any time during the 1-year time period ending with the date of the claim for a qualified education payment. Qualifying period of qualified education expenses. You are a resident of the United States, during a period of 3 consecutive years ending June 1, 2018, until June 30, 2019. Qualified education program of a private, for-profit, qualified education provider. You are a resident of the United States, of the United States for at any time during this 3-year qualified education period, if you receive, are assessed, and paid, qualified education expenses while enrolled, in an eligible education program of a private, for-profit, qualified education provider in Seattle, Washington, during the 1-year qualified period ending July 1, 2018.
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