Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-06-2015, 06:32 PM
Junior Member
 
Join Date: Oct 2015
Posts: 2
Can CANCELED DEBT (Other Income L-29) be excluded when computing 8962 Premium Tax Credit?

My wife and I are self-employed. She has a marketplace policy.

After spending days running the worksheets and steps involved, I am way OVER the 400% poverty line.

This is because I have CANCELED DEBT income of over $28K that shows on L-21 of my 1040! I am trying to find out if this canceled debt MUST be included as income on the 1040 when calculating my Premium Tax Credit? It just does not seem "fair" since it is NOT part of our Sched C income (so was not part of our qualifying questions from Marketplace) and resulted when we partially paid off our credit cards with borrowed funds to eliminate our credit cards. What a bonehead move!

BOTTOM LINE: Can I NOT show CANCELLED DEBT INCOME on LINE 29 of 1040 to compute my 8962 for Premium Tax Credit?

Thanks so much for any help!


Last edited by taxwacked : 10-06-2015 at 06:45 PM. Reason: Typo in Title


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Starting in 2014, Taxpayers may be eligible for the Premium Tax Credit if they purchase health insurance through the Health Insurance Market Place TaxGuru General 0 11-06-2013 03:27 PM
Credit Card Debt Cancellation and LLC [email protected] For 2012 0 03-25-2013 12:56 PM
Child tax credit makes mortgage interest credit null? ianpreston Tax Credit 0 03-04-2011 01:35 PM
Californians who lose their homes may face state income debt on cancelled debt!! TaxGuru California 0 09-09-2009 10:57 AM
Should taxpayers use a Home Equity Loan (HELOC) to pay off credit card debt? TaxGuru Itemized Deductions 0 09-08-2009 12:22 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.