Do both borrower & cosigner file 1099-C?

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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.

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AmyCAnswer

Alumni - Intuit

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.

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AmyCAnswer

Alumni - Intuit

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"