[Tax Year 2019] I received a 1099 c form for my deceased husband. He passed away in 2016. I am not planning to file a tax return for him this year. What do I do with this information?

[tahart04]

I do not plan on filing a return for him.  What do I need to do with this information?  

[JulieH1 · Accepted solution]

I am very sorry for your loss.

A 1099-C is a form a debtor sends when they cancel a debt.  The canceled debt is considered income.

Considering your husband passed away in 2016, you cannot do a joint return this year.  Therefore, there is not a return to add the income unless there was an estate opened.  If there was no estate or probate opened or the estate was closed, then there is nothing you can add it to. If you want to be cautious you can put "deceased " on it and send to the IRS with a letter or you can address it later if they contact you over it.

If you are on the 1099-C as a joint recipient of the canceled debt, you need to include it on your return.

[xgysgt]

Does it make a difference in a community property state.  My wife died in 2018.  I just received the 1099-C from one of her creditors.  

[AlexanderS08]

Sorry for your loss.

The fact that you are in a community property state does not make a difference; however, as a widow you may file as Married File Jointly for the year of death, but you need not file that way if you prefer to file as Single.

Notwithstanding that, given that there is a 1099-C in her name, it may be more advantageous if you file as Single. You wouldn't get the advantage of Married tax rates, but you would not pick up any of her income.

If you don't file Married Filing Joint then joint and several liability for tax debt would not apply so even if they assessed your deceased wife, you would not be liable because you didn't file jointly.

Conversely, if you DO file jointly, then EVEN IF the 1099-C is in her name, you will be assuming responsibility for the tax implications of it.

[xgysgt]

Thank you for the reply.  I did file as Married filing Jointly for 2018.   My concern was for this year 2019.  Now that I just got these 1099-C's.   What if anything do I have to do.  File a tax return for her under her estate, which there wasn't one.  She had no income at the time of death, no property of her own, no savings.  I was just worried that living in a commuity property state I would have to declare the debit as my income even though it's been a year since her death.  Or for that matter if another 1099-C shows up in any upcoming years.

[xgysgt]

Just to clarify.  My wife died in July of 2018.  I filed a final joint tax return in 2019.  Just as I had done ever since we were married.   Now tax year 2019 I got the 1099-C as few days ago in 2020.  I have no minor children so I don't qualify to file as a widower.  I'm filing single for tax year 2019.  

[AlexanderS08]

Yes, that is excellent you will be filing as Single. Do not include her 1099-C on your return!

[widow21]

@AlexanderS08 Thank you for your previous answers - very helpful. My case is just a bit different, as I am filing as a qualified widow.

My husband passed away in 2019. I filed a joint return for 2019 and am filing as qualified widow for 2020. I received a 1099-C for my husband for 2020. Do I include this as my income? There is no estate in his name. 

[ToddL99]

What was the 1099-C for? Was the forgiven debt based on a joint account (e.g. mortgage or credit card)?

[widow21]

Hi - thank you for your quick response!

The cancelled debt was for credit card debt only in my husband's name. I was not on the credit card. 

[ToddL99]

Do not report this 1099-C on your return. It was your deceased husband's debt, not yours, and there is no requirement for your to report it on your return.

Your husband''s final return was filed in 2019 (joint, with you. There is no way to report this 1099-C on a 2020 tax return.

Since there is no open estate, there are no estate assets and no estate return requirements. You can either file the 1099-C with your 2020 tax files or discard it. 

[widow21]

Thank you so much, @ToddL99 . This was very helpful and timely advice! Many thanks. 

[MZ26]

If her husband left her an IRA would that be subject to a lien for the 1099-C

[tattoothischick78]

You can never file single if you are married.  You must use a married filing status, either joint, or separate.