Help Calculating Debt Forgiven or Cancelled Under Taxable Income

Credit Card Sitting On Money

Debt that is forgiven or cancelled by an official lender is deemed to be taxable income. For example, if you settle a $5,000 credit card debt for $2,000, you will owe income tax on the $3,000 that was forgiven.

For further questions about Phoenix personal income tax accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.

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