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According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you. You'll receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.
If your New Jersey taxable income is over:But not over:Your tax is:$0$20,0001.4% of your income$20,000$50,0001.75% of the excess of $20,000 minus $70.00$50,000$70,0002.45% of the excess of $50,000 minus $420.00$70,000$80,0003.5% of the excess of $70,000 minus $1,154.504 more rows
The monthly payment must be at least $25. Plans may be approved for up to a maximum of 72 months. All plans are subject to approval. We will continue to add interest to your unpaid tax balance.
Interest is assessed at the annual rate of 3% above the prime rate.
Fees for IRS installment plans If you cannot pay off your balance within 120 days, setting up a direct debit payment plan online will cost $31, or $107 if set up by phone, mail, or in-person. If not using direct debit, then setting up the plan online will cost $149.

People also ask

In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs.
No, cancellation of debt is considered exempt income, and should not be included when you file your New Jersey return. return.
For Income Tax (GIT) purposes, cancellation of debt (COD) or forgiveness of debt income is not subject to tax and should not be reported on an Individual Income Tax return.

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