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Level 1

1099c cancellation of debt student loan - who should file? Parent or child?

As co-signer on kids' ed loans, they and I both received a 1099-C for Cancellation of debt. Which one of us should do the filing and how will IRS know which is right and proper?

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Level 3

1099c cancellation of debt student loan - who should file? Parent or child?

The child should file the 1099-C because the child is the debtor. The co-signing parent is a guarantor not a debtor according to the IRS (https://www.law.cornell.edu/cfr/text/26/1.6050P-1)

The co-signing parent should not have gotten a 1099-C and you should contact the creditor and ask for a corrected 1099-C. If the creditor refuses to correct the 1099-C issued to the co-signing parent, the cosigner will need to attach a note to the tax return with an explanation.

4 Replies
Level 3

1099c cancellation of debt student loan - who should file? Parent or child?

The child should file the 1099-C because the child is the debtor. The co-signing parent is a guarantor not a debtor according to the IRS (https://www.law.cornell.edu/cfr/text/26/1.6050P-1)

The co-signing parent should not have gotten a 1099-C and you should contact the creditor and ask for a corrected 1099-C. If the creditor refuses to correct the 1099-C issued to the co-signing parent, the cosigner will need to attach a note to the tax return with an explanation.

Level 1

1099c cancellation of debt student loan - who should file? Parent or child?

Do i not put it on my tax return as income? Do i send in a paper copy with a note?..
Level 1

1099c cancellation of debt student loan - who should file? Parent or child?

I am curious about this, as well.
Level 2

1099c cancellation of debt student loan - who should file? Parent or child?

Should I include the 1099-C as income and attach a letter. Then file a amended return ?