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My husband received a 1099 c for a property him and his ex wife defaulted on 15 years ago. Do we do the solvency worksheet with our stuff together or seperate?
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Deductions & credits
It depends. It is unfortunate that the mortgage forgiveness provision was allowed to expire. So, in order to reduce the amount of reportable income from the cancellation of debt on the house, it will be necessary to calculate insolvency. But that does not require you to file separate returns, but you can calculate your insolvency separately. Those calculations are on a separate worksheet which you basically fill out manually.
Here is the most recent worksheet currently available on the IRS website (last year's version). You'll want to wait for this year's form, but this will give you a good idea: https://taxmap.irs.gov/taxmap/pubs/p4681-002.htm#en_us_publink100052679
The IRS may ask for this form. You would need to mail it in if they do.
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