topic 1099-C in Retirement tax questions

1099-C

ecksfiles — Tue, 14 Mar 2023 20:21:37 GMT

I completed a final personal tax return for my Aunt in 2022 for tax year 2021. There is no estate or resources left as a result of her death. I just received a 1099-C cancelling the debt of a CC. Exactly what do I need to do with this form or do I need to do anything at all? thank you

Re: 1099-C

PattiF — Tue, 14 Mar 2023 20:34:37 GMT

You do not need to do anything with this form. If she had an estate, the estate would be responsible for paying the tax on the income. In the absence of an estate, you have nothing to report.

Re: 1099-C

ecksfiles — Tue, 14 Mar 2023 20:36:45 GMT

is a savings account that was benefited to the sister considered part of her estate and thus would need to be utilized as payment for the taxes as it relates to the 1099-c?

Re: 1099-C

Anonymous_ — Tue, 14 Mar 2023 21:02:21 GMT

A savings account would be considered part of her estate.

Debts of the decedent need to be paid prior to distribution of any assets from the estate.

A 1099-C would be income to the estate.