Here's what you need to know about the Mortgage Forgiveness Debt Relief Act and how it can exempt you from paying taxes on canceled debt. RELATED: Mortgage Tax Deduction Options That You Should Know About A Guide to the Mortgage Forgiveness Debt Relief Act Step 1. Report Canceled Debt in Your Tax Return The IRS considers canceled debt as income. Therefore, it is taxable. … [Read more...]
How To Prove Financial Hardship To The IRS
The IRS acknowledges financial hardship as a legitimate reason for tax relief — as long as a taxpayer can prove it. RELATED: How To Come Up With A Financial Savings Plan A Guide to Proving Financial Hardship to the IRS Step 1. Know How the IRS Defines 'Financial Hardship' The phrase 'financial hardship' means different things to different people. It is usually dependent … [Read more...]