{"id":520757,"date":"2010-04-08T11:00:00","date_gmt":"2010-04-08T15:00:00","guid":{"rendered":"tag:consumerist.com,2010:\/\/1.10004284"},"modified":"2010-04-08T11:19:31","modified_gmt":"2010-04-08T15:19:31","slug":"if-you-were-broke-you-dont-need-to-pay-taxes-on-forgiven-debt","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/520757","title":{"rendered":"If You Were Broke, You Don&#8217;t Need To Pay Taxes On Forgiven Debt"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/consumerist.com\/assets_c\/2010\/04\/brokepants-thumb-165x263-39071.jpg\">         <\/p>\n<p>Here&#8217;s an important caveat to our &#8220;<a href=\"http:\/\/consumerist.com\/2010\/04\/you-need-to-pay-taxes-on-forgiven-credit-card-debt.html\">You Need To Pay Taxes On Forgiven Credit Card Debt<\/a>,&#8221; post: you don&#8217;t need to pay the taxes if you were insolvent at the time the debt was discharged.<\/p>\n<p>The <a href=\"http:\/\/www.irs.gov\/newsroom\/article\/0,,id=201877,00.html\">IRS defines<\/a> a taxpayer as insolvent, &#8220;when his or her total liabilities exceed his or her total assets.&#8221; In other words, when you owe more than you have.<\/p>\n<p>In this case you would just include <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f982.pdf\">form 982<\/a> and check off the box where it asks if you&#8217;re insolvent. Do not include this amount on line 19 of the 1040 if you were insolvent at the time.<\/p>\n<p>PREVIOUSLY: <a href=\"http:\/\/consumerist.com\/2010\/04\/you-need-to-pay-taxes-on-forgiven-credit-card-debt.html\">You Need To Pay Taxes On Forgiven Credit Card Debt<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s an important caveat to our &#8220;You Need To Pay Taxes On Forgiven Credit Card Debt,&#8221; post: you don&#8217;t need to pay the taxes if you were insolvent at the time the debt was discharged. The IRS defines a taxpayer as insolvent, &#8220;when his or her total liabilities exceed his or her total assets.&#8221; In [&hellip;]<\/p>\n","protected":false},"author":5467,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-520757","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/520757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/5467"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=520757"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/520757\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=520757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=520757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=520757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}