1099-C Please help!?

Forum|Forum|3 years ago
April 2, 2023
2 replies
7 views

My husband passed away 2022. A 1099-C came in his name for his canceled debt, which was from a credit card that he opened before we married, and my name isn't on. I was told I had to include this 1099-C (of his) on my taxes but does this only apply if I am filing married/joint? He had very little income in 2022 for a few months, can I file without him, married/single and not apply that 1099-C? Again the 1099-C does not have my name on it. So two questions, am I required to claim this 1099-C on my taxes either way that I file (joint or single) because I was married- or no? There was no estate/trust/probate for him. If I file married/single can I just disregard his income and his 1099-C? I wonder which is more beneficial to me.. to claim his little income and include this debt relief 1099-C of about 16k, or me claim single? Thoughts and advice? Thank you in advance.

ThomasM125

Level 15

I am sorry for your loss. Provided you don't live in a community property state, you don't have to include his income on your tax return if you file married-separate, and you can do that if you choose to. If you file as married-joint, then you would have to include the income on your tax return. You would have to try it both ways to determine which way is better.

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CMF2023Author

Level 2

I live in CA. The debt cancelation happened after his passing I called to cancel card and told them he passed. They told me I wasn’t responsible for the debt since I was not on the account. Someone else responded that it may need a 1040 to claim on estate tax, but he had no estate so I didn’t set that up. No assets. Can you please respond again now that you have this info? Greatly appreciated!

Anonymous_

Level 15

I am very sorry for your loss.

If the cancellation occurred prior to your husband's passing, then it is reportable on your husband's return as income.

If the cancellation occurred subsequent to your husband's passing, then it is reportable on your husband's estate income tax return (Form 1041) as income to his estate.

CMF2023Author

Level 2

It was canceled after his passing. It was 16k and I wasn’t on the account therefore not responsible. I live in CA and he didn’t have an estate, or any assets. He didn’t receive a 1041 form just the 1099-C. So what do I need to do? Thank you