My brother passed away in Jan 2021. I managed basically all the details of his life the last several years. He had very limited income, and there was no court-appointed rep or spouse. I want to file his 2020 return and have several questions I would appreciate insight on:
Asset/Income details: He had about $34k from two sources - split basically evenly between soc security and a cancelled debt from a credit card company. They sent him a 1099C for that debt. He also received a small vet's pension (a few hundred a month) that I understand is not taxable. He was insolvent at the end of 2020, with assets of only about $1000.
Questions:
1. From what i understand, i should file a 1040, note that he is deceased, and i would sign as his preparer. Can I use the Free Edition?
2. I have found online that if a person is insolvent and receives a 1099C, that cancelled debt that needs to be reported as income can then be deducted later in the return. I'm not sure where on the form, tho. Any insight would be appreciated.
3. I don't think I need to file Form 56 since I was not a "trustee, executor, administrator, receiver or guardian" (from IRS site).
4. I have seen conflicting info on if this return can be filed electronically. Anyone know?
I may receive additional 1099 C in 2021. and since he passed in 2021, will need to file a return next year. But I won't know until probably January of 2022.
Thank you!
