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kimlarrabee505
New Member

1099C on foreclosure in taxes in 2015 in wife's name. 1099C on same debt received in husband's name for 2017, different event dates and codes. how do I report this?

my husband and I file jointly and therefore this debt was reported as income to the IRS in 2015.
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ToddL
New Member

1099C on foreclosure in taxes in 2015 in wife's name. 1099C on same debt received in husband's name for 2017, different event dates and codes. how do I report this?

Without a whole lot of details, it is hard to figure out why & how a lender might do something like this (the term "playing fast and loose" comes to mind).

If both of you were on the mortgage, technically they can send out full-value 1099-Cs to each of you.

If you resolved the 2015 1099-C on a 2015 joint return and paid any tax due, then you should not have to deal with it again. You should still report the 2017 1099-C, same as before, but can make an offsetting entry in "Other Income".

To enter the offset

  • Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
  • Continue to the screen "Other Taxable Income". Enter the description as "Previously Reported 1099-C" and the amount as a negative number. These are NOT wages.

If you resolved the 2015 1099-C on a 2015 joint return and qualified for an exclusion/exemption for income, then you might want to report it again and claim the same exclusion/exemption again. 

In either case, you may hear from the IRS, especially if no additional tax was paid in 2015. In that case, you'd have to provide them with additional information and an explanation.

I realize this is more than annoying, but if each of you were on the mortgage, they (the IRS) have to "cancel the debt" for each of you.

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1 Reply
ToddL
New Member

1099C on foreclosure in taxes in 2015 in wife's name. 1099C on same debt received in husband's name for 2017, different event dates and codes. how do I report this?

Without a whole lot of details, it is hard to figure out why & how a lender might do something like this (the term "playing fast and loose" comes to mind).

If both of you were on the mortgage, technically they can send out full-value 1099-Cs to each of you.

If you resolved the 2015 1099-C on a 2015 joint return and paid any tax due, then you should not have to deal with it again. You should still report the 2017 1099-C, same as before, but can make an offsetting entry in "Other Income".

To enter the offset

  • Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
  • Continue to the screen "Other Taxable Income". Enter the description as "Previously Reported 1099-C" and the amount as a negative number. These are NOT wages.

If you resolved the 2015 1099-C on a 2015 joint return and qualified for an exclusion/exemption for income, then you might want to report it again and claim the same exclusion/exemption again. 

In either case, you may hear from the IRS, especially if no additional tax was paid in 2015. In that case, you'd have to provide them with additional information and an explanation.

I realize this is more than annoying, but if each of you were on the mortgage, they (the IRS) have to "cancel the debt" for each of you.

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