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Fees Paid to Reduce Credit Card Debt

February 1st, 2016

If you paid a Debt Resolution Fee to successfully have your credit card debt reduced, all of the cancelled debt is income and the Debt Resolution Fee may be used as an itemized deduction subject to the 2% of your Adjusted Gross Income (AGI).  For example, if your AGI is $10,000, fore the Debt Resolution Fee to become an itemized deduction it must exceed $200 then only the excess over $200 is an itemized deduction on Schedule A.

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