I have a second job that pays me like I am contracted. Basically I do work for a company one day a week and they pay me by check and don't take out any deductions at all. So I get a 1099-Misc for my tax return purposes. I am confused as to how it should be entered on my tax return. I don't "have a business". They just pay me "nonemployee compensation".
I also received a 1099-C "cancellation of debt" for an amount of around $1200 from an OC. I was told I don't need to pay taxes on it if I inform the IRS that my Debt exceeds the amount canceled. How would I do this?
They are also still reporting an amount owed/due on my CR. Can they still report the amount if it was forgiven and I pay taxes on it? How should the OC report it after issuing the 1099-C?
I will post this in the credit forum as well because I am unsure of the "best forum" for these topics
