Do both borrower & cosigner file 1099-C?

Forum|Forum|5 years ago
February 5, 2021
1 reply
0 views

Do both the borrower & cosigner have to file a form 1099-C on their federal income taxes for canceled private student loan debt sent to collections due to cosigner's Chapter 13 bankruptcy? The cosigner never made a payment throughout life of loan, even before it was sent to collections. Only borrower made payments.

TurboTax Self Employed Online

Best answer by AmyC

The borrower is the debtor and includes the income. The cosignor was the guarantor and not required to claim the 1099-C income. See Legal information.

If you incorrectly receive the 1099-C, contact the issuer and ask for a corrected form to be issued, excluding you. If the issuer will not, you will need to add a statement to your return explaining why you have chosen to not include the 1099-C on your return. You will have to mail in your return. You will not be able to e-file with a statement.

AmyCAnswer

Level 15

The borrower is the debtor and includes the income. The cosignor was the guarantor and not required to claim the 1099-C income. See Legal information.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"