My spouse passed in 2016 and had student loan debt that was forgiven in 2017. I am filling as a widower with dependents. Do I owe taxes on HER forgiven debt?

[perdun]

I have 4-kids

we were married for 16 years

I had a will  but no estate

I live in Indiana

I am not re-married

She graduated from college in 2001

[MichaelL1]

Very sorry for your loss.

The student loan debt forgiven would be reported on a Form 1041 Estate (which is for income received after the date of death).  Then if the estate was insolvent a Form 982 could be attached to exclude this from income - the discharge of indebtedness.  

Please see below for a very detailed explanation of this.  This is a prior answer to a similar question asked, and the tax law is still the same in this area.

https://ttlc.intuit.com/replies/6127378