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Get your taxes done using TurboTax
In the new tax bill, discharged debt in the event of death or total and permanent disability will no longer be taxable. The provision expires after 2025.
In your case, the debt will only be discharged after the 3-year monitoring period, i.e. in 2019. You will received a 1099-C for the discharged for tax year 2019. And you will not owe tax on that amount according the new tax bill.
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‎June 4, 2019
10:53 PM