I just received a 1099 MISC form from Chase for a shortsale incentive they gave me at the closing (10,000). Is this taxable? My short sale qualified under the Mortgage relief act and I do not owe taxes on the difference, yet it appears I will be owing on the incentive (relocation incentive). Is there a way to report it so that taxes are not owed?

Thank you for your help

I just received a 1099 MISC form from Chase for a shortsale incentive they gave me at the closing (10,000). Is this taxable?”My short sale qualified under the Mortgage relief act and I do not owe taxes on the difference, yet”----> In a short sale, a mortgage lender may allow a homeowner to sell a mortgaged home for less than is owed on it. The Mortgage Debt Relief Act of 2007 relieves the homeowner from paying taxes on the amount of the debt that goes unpaid known as debt forgiveness. The lender must write off the remaining balance on their books. You, the seller, are then free to walk away, and the new buyer gets clear title to the home. If you plan to take advantage of the Mortgage Debt Relief Act, report the amount of debt forgiven on IRS form 982 and attach it to your income taxes for the year in which the debt was forgiven.
“ it appears I will be owing on the incentive (relocation incentive). Is there a way to report it so that taxes are not owed?”---->Yes; relocation incentive pmt is taxable. It goes on Line 21, Other Income, on Form 1040. Home Affordable Foreclosure Alternative is offering a $3,000 relocation assistance for homeowners. This money is to help you out in terms of moving and relocation costs. If you short sell your house, this money is guaranteed, no hidden fees, circumstances, or agenda. Relocation Assistance is merely an incentive to assist you and your burden. Upon closing of the house, the servicer is bound to pay the borrower the relocation costs immediately, and must reflect doing so on the HUD-1 Settlement, more commonly, the closing statement.