As @kalehnhardt2 posted Jan 28 2020, if you both received a 1099-C and were both jointly and severally liable for the debt, you can take this approach::
Per Publication 4681 - Canceled Debts, Foreclosures, Repossessions, and Abandonments, if you and your ex were jointly and severally liable for a canceled debt, each of you may get a Form 1099-C showing the entire amount of the canceled debt. However, you may not have to report that entire amount as income.
The amount, if any, you must report depends on all the facts and circumstances, including:
- State law;
- The amount of debt proceeds each person received;
- How much of any interest deduction from the debt was claimed by each person;
- How much of the basis of any co-owned property bought with the debt proceeds was allocated to each co-owner; and
- Whether the canceled debt qualifies for any of the exceptions or exclusions described in this publication.
The debt was for a truck loan. The individual that had possession of the truck would be the individual that would claim the full amount of the debt cancellation.
You will need to mail in your return and attach a statement stating that you are not responsible for any part the joint debt on the Form 1099-C. You should list the name and social security number of your ex and state that that person is including the entire amount of the debt on their return.
