I received a 1099 C for a cancellation of debt after my mother passed away last year. The document has her SSN on it (not the Estate FEIN). Can I just include it on her return as income instead of filing a separate Estate return? It only recently occurred to me that it is Estate income and not hers and have included in her draft return (but we're at filing day now). The taxes get paid either way, so does it matter if it's on hers or an Estate's return?
You'll need to sign in or create an account to connect with an expert.
Yes, if you have already filed a Final Return for your mother in the year she passed away, then the 1099-C would be reported on the Estate return. Any income after death is reported by the Estate.
Depending on the type of debt cancelled, it may not be a taxable event anyway.
If you contact the issuer and report the death, they may just write it off.
Here's more useful info after a Death in the Family.
Sorry for your loss.
I haven't filed hers yet (I have it prepared but didn't send yet). It's a credit card partial forgiveness, so it should be taxable. Should I create a second return for the estate or can I just put the 1099-C on hers as income?
If it was cancelled before the day she died you can enter it on her final tax return. There should be a date of cancellation on the form. Otherwise, it should be entered on the estate tax return.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
betsyvega74
New Member
Raph
Community Manager
rsmith160
New Member
emaven
Returning Member
geercom
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.