Note: The author is not a CPA or tax technician. This article is for general information purposes, and need to not be construed as tax professional guidance. Readers are strongly asked to consult their tax professional regarding their personal tax situation. In previously mentioned scenario, ahead of time saved $7,500, but the irs considers it income. If the amount is passed $600, the creditor is usually send you with a form 1099-C. How should it be income? The internal revenue service co...