cancel
Showing results for 
Search instead for 
Did you mean: 

Chapter 7 Taxes on Discharged Debt??

Highlighted
Established Member

Chapter 7 Taxes on Discharged Debt??

Hi, I am on social security/ssi and am usually not required to file taxes as my income is around 9300 yearly of non reportable income. I was recently discharged on a large bankruptcy with only unsecured credit cards and was wondering if I will have to file anything with the irs for the discharged debt? or can I continue not filing as usual?

Message 1 of 3
2 REPLIES 2
Highlighted
Super Contributor

Re: Chapter 7 Taxes on Discharged Debt??

You should be set and no worries. You earn less than $12,200. In most cases, if you only receive Social Security benefits then you would not have any taxable income and therefore would not need to file a tax return. One catch with Social Security benefits is if you are married but file a separate tax return from your spouse who you lived with during the year, then you will always have to include at least some of your Social Security benefits in your taxable income to see if it is greater than your standard deduction.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 3
Highlighted
Established Member

Re: Chapter 7 Taxes on Discharged Debt??

Thanks for the response. I get 9300 yearly in ssi benefits which the irs doesn't recognize as income. If I were to fill out a 1040 I would have to put 0 income Normally. Some people have spoke of needing to file a form 982 with the irs which kind of has me worried

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.