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hey there youtube so in this video i wanted to cover irs form 982 this is a form for the reduction of tax attributes due to discharge of indebtedness okay so its quite a mouthful what does that mean well uh generally as a us taxpayer if you have any kind of cancelled debts right so if you have a credit card balance that you havent been able to pay back and the credit card company basically cancels the debt that is income to you its taxable income its arguably phantom income because youre not really receiving anything at that time but nevertheless its still taxable income okay cancellation of debts are income to you as the taxpayer as a taxpayer youll get a 1099 c in the mail right this is an example here from a credit card company uh john s is the taxpayer and so john had 2500 of credit card debt with this company he wasnt able to pay it back so they canceled it in box four here although indicate what type of debt it was this is credit card debts uh in box six they have a
