cj229
New Member

My mom died and had 15,000 in credit card debt- zero assets- and my siblings are telling me we have to pay taxes on the debt counted as income-is this true?

 
IsabellaG
Expert Alumni

Get your taxes done using TurboTax

I'm sorry for your loss. Was this credit card debt forgiven by the credit card companies? Did your receive a 1099-C for cancellation of this debt for 2017? 

If not, then you don't have any income to report on her final tax return. 

Even if you did, if she had no assets, she could be considered insolvent at the time of the debt cancellation, and would not have taxable income. That would be a more complicated situation, and you would need to use Form 982 to show insolvency. Any TurboTax CD/Download Product could handle this. You would need to make your entries in Forms Mode.

See this link for a discussion of Cancellation of Debt.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post