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Article: Yep- she's right. I had settled a cosnemur card for half of what I owed and I got one of those forms to file with my taxes this year. It basically states that you saved this much money, that technically you owed, so therefore it's considered income. You have to pay taxes on the amount you saved. I feel bad for people that go through debt settlement companies- you know? I don't think a lot of them realize that even though they are saving money right then- in the long run they are still somewhat responsible for it. Hope this answered your question hun- Good Luck!References : Was this answer helpful?

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