ToddL
New Member

State tax filing

Since the co-signer was legally responsible for the debt and received a Form 1099-C, then it should be report on the co-signer's tax return. 

Whether or not this results in taxable Cancellation of Debt income will depend on whether the co-signer qualifies for any exemption or exclusion.

See: 

Is cancelled, forgiven, or discharged debt taxable?