Received 1099-C cancellation of debt for credit card for deceased widowed mother (died 11/5/19) this week. Do i need to file a return for this and how do i do it?

[amajewski1104]

my mother was sole person on credit card account.  no probate was opened because she didn't have enough assets.  do we have to pay taxes on this, my mother died over a year ago?  Thank you.

[amajewski1104]

I really appreciate the advice, thank you.

[HelenC12]

So sorry for your loss.

No, you don't have to pay income taxes on your mother's cancelled debt.

Generally, if there was an estate established for her, the cancelled debt would be income to the estate. However, you stated she didn't have enough assets. 

Click this link for more info on Cancelled Debt for Deceased Persons.  Source: MarilynG1

[amajewski1104]

Thank you for your answer.  Do I need to file a return for her to list this 1099-C, or should I just disregard it?  It says it was furnished to the IRS, so not sure what I should do?

[ColeenD3]

In the link in the comment from HelenC12:

Considering your xxx passed away in 20xx,...  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.