Yes, the exception is that the estate debts are not your debts as the surviving spouse of the decedent, except for responsibility as the administrator of the estate. The 1099-C should have been issued under the estate ein, not your wife's ssn since they were cancelled after her death.
You should get an ein for the estate of your wife. The issuer of the 1099C needs to receive the estate EIN and you need to request them to issue a corrected document with the estate ein, not the deceden't ssn since the debt was cancelled after her death
I am assuming you paid the $500 to the credit card company on her estate's behalf out of the estate assets, not your own since you were not legally liable to pay them anything unless you were also a responsible party on the credit card.
