Because you are cosigners of the student loan they are correct in issuing two 1099C's. However the income tax if both paid would be double what was forgiven.
IRS has a letter ruling on this issue and what you need to be, based on the facts and circumstances of who actually benefited from the debt, and who normally would pay the debt, you determine which return it should go on.
So it does get reported on one return, however due to 2 1099C's issued for same amount, the one that does not report it, needs to have very detailed documentation as to who the other one is, and that they in fact did report it, and the amount on the 1099C is doubled due to co-signing.
So expect a letter from IRS a couple years from now for the one that is not reporting it.
Look at this IRS publication link page 4 the first column, as it goes into detail on this same subject.
Because you are cosigners of the student loan they are correct in issuing two 1099C's. However the income tax if both paid would be double what was forgiven.
IRS has a letter ruling on this issue and what you need to be, based on the facts and circumstances of who actually benefited from the debt, and who normally would pay the debt, you determine which return it should go on.
So it does get reported on one return, however due to 2 1099C's issued for same amount, the one that does not report it, needs to have very detailed documentation as to who the other one is, and that they in fact did report it, and the amount on the 1099C is doubled due to co-signing.
So expect a letter from IRS a couple years from now for the one that is not reporting it.
Look at this IRS publication link page 4 the first column, as it goes into detail on this same subject.
Can each person split the amount owed, instead of only one doing this?