If you are in the same situation, even if the daughter did not receive a 1099-C, the co-signer is not responsible for the 1099-C. Opus17 provided great steps above for how to handle this situation on your tax return. I have copied his response to this thread for easy review, "If you file by mail, the IRS instructions say to leave the 1099 off your return, and attach a copy with a written explanation as to why you did not include it.
When e-filing, the correct procedure is to list the income (canceled debt, it will go on line 8c of schedule 1) and then add a negative adjustment to line 24z with a brief written reason (something like "1099-C not taxable to co-signer"). However, to make the entry on line 24z, you need to access the form directly in the desktop version of TurboTax installed on your own computer from a download.
When e-filing using TurboTax online, you can't access line 24z, so an acceptable alternative procedure is to list the income as canceled debt, then add a negative item of "other taxable income" to offset it. Use the same brief written reason. This will put the negative adjustment on line 8z of Schedule 1 instead of line 24z, but it's what TurboTax recommends when using TurboTax online."
@Parsons703
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