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Help! Fannie Mae 'Cash for Keys' and Federal Income Taxes?

About a year ago a roommate and I moved into an apartment and the whole thing turned out to be a foreclosure scam. The apartment was in foreclosure and had already been purchased by Fannie Mae. Within two weeks of moving in Fannie Mae came in and found us living in the unit. They payed us $3000 to move out in a cash for keys agreement. I was told by the agent (a Realtor) that I would receive tax forms to be able to report the "income" of the agreement. I filled out a W-9 at the time, but have never received any information.

The agent has told me repeatedly that he NEVER deals with tax implications of the agreements. Fannie Mae is ridiculously hard to get ahold of, and after 3 months of calling multiple times a week, I have never spoken with anyone who can tell me anything. They just keep telling me that a higher-level representative will contact me, but they either never do, or don't know how to track down the paperwork. I have tried to contact the IRS a few times also, with very little luck and alot of confusion.

Now, with only two weeks to file, I have no idea how to. I am assuming it goes on the "other income" line, but that is just a guess and I don't know what type of income to list it as. I know that it was an even $3000, with nothing taken out at the time.

Has anyone else dealt with the cash for keys agreement? Could you tell me how I should file the income or what type it is? Can I file without the forms? Any info helps, Thanks!

4 Answers

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  • 7 years ago
    Favourite answer

    Cash for Keys payments go on Form 1040, Line 21, Other Income.

    The only safe way to proceed is to assume that your copy of the 1099-MISC went missing in the mail but the IRS got their copy which is almost always filed electronically.

    The only time that you need a copy of a 1099 in hand is when taxes were withheld from the payment. That is unusual in cases like this.

  • 7 years ago

    You'll have to file without the forms. The IRS says exactly what you know already: http://apps.irs.gov/app/vita/content/15/15_02_010.... (it's the second paragraph).

    Your form was due by the end of February. The company that did not issue it is liable for an unfortunately small fine (less than $100). That may be why they didn't bother! https://turbotax.intuit.com/tax-tools/tax-tips/Sma...

  • tro
    Lv 7
    7 years ago

    if you completed a W-9 and you were paid $3000, you will be sent a 1099 at the end of the year

  • 7 years ago

    How long did it take Fannie Mae to issue the money in going thru that now

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