This is a discussion on Legal Advice / Tax Help within the General Chat forums, part of the TechKings Lounge. category; In 2004 I had an un-insured auto accident, about 4 weeks ago ...
In 2004 I had an un-insured auto accident, about 4 weeks ago the state of Ohio said the company had won a judgement against me and that my liscense was suspended and i forthfited my right to renew or register vehicles in the state of ohio. I called the BMV in NH where i currently live and they said i would lose my liscense here as well. So i had two options, file bankruptcy, or pay the debt off. The debt was 20,000.00$ USD. I got the company to settle for 9,000.00$ USD. Now I know the company can write it off on their taxes as a loss, and I will have to pay taxes on it when tax time rolls around next year. My questions is, is I make 33,000.00$ a year. How much will i have to pay in taxes because i settled with that company? Please let me know if i am not understanding this right. BTW this debt has not even shown up on my credit report. Thanks for any input you may have, Homesick.
---------- Post added at 04:32 PM ---------- Previous post was at 04:12 PM ----------
just this one time, kind of important to me..