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Business & farm
You will not need to include the 1099-C in your return. It may need to be reported in her estate's return on Form 1041. I am sorry for the death of your wife.
Topic no. 431, Canceled debt – Is it taxable or not?
Publication 4681 (2025), Canceled Debts, Foreclosures, Repossessions, and Abandonments
February 16, 2026
6:03 AM