Okay after following the IRS worksheet, I answered all of the questions given to me, honestly with exact numbers. I entered their combined social security income when asked and then entered the $12000 in canceled debt into the gross income box after following the instructions - I did not meet the criteria to enter any part of their social security benefits into this box, so it was just the $12000 in discharged debt.
After answering everything, it stated that she would not need to file because the total income did not exceed $32,000.
So I guess that answers my question? Just keep the 1099-C tucked away in the case I need it and don't file a return?
