My 92-year-old mother with dementia has credit card debt. Chase will forgive the debt but may issue a 1099C. Is this a concern with Medicaid?

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My understanding is that if the CC has reached default status then the CC issuer can do whatever system they have set up (& may be required to do for banking / lending regulations) & you agreed to by applying for & using the card. They will roll it for a while but it has to get written off with 1099-C issued eventually for them to balance their books,

They will sell it to secondary debt collectors too.
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Can you ask them NOT to forgive the debt?
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Another issue for 1099-Cs is that the amount is taxable income. Although it is somewhat "phantom income" it still is taxable. The CC written off (debt plus interest & fees) could add up to quite a bit. For those on Medicaid it poses 2 different but intertwined issues...... It is reported income which if your state does matching with IRS will more than likely take her over the income allowed by Medicaid AND as taxable income means taxes are due on the "income" which if not paid means IRS can attach as an allowed supercreditor which for those on NH medicaid poses an issue for mom being able to pay her required SOC (share of cost).

The solution will be for mom to file taxes if she gets the 1099-C and within her taxes she does a IRS form 982 to reduce or zero out the taxable income. The 982 is pretty sticky to deal with. To me, it's not a DIY but needs a CPA or better tax pro to do it.

BTW Any original creditor owed over $ 600 can issue a 1099-C. The banks, mortgage co & CC do it routine but it may not be for 2017 as its already midyear but roll into 2018 FY.
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The IRS considers 1099C as accountable income. Each State's Medicaid office has slightly different rules, therefore you would need to contact Mom's State to see how they would handle this "income".

Also depending on the amount of debt that was forgiven, your Mom may need to file income taxes come next April.
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