The 1099C debt is assigned to my ex husband. Must I report it, too?

[4thejordanfamily]

my ex husband was assigned this debt settlement in our divorce but my name was still on the original debt.  we both received the same 1099 C with the same amount. he is going to report the income on his taxes.  do i have to as well?

[LeeM · Accepted solution]

No, as long as he reports the 1099-C, then you should not have to from the facts you gave above.

If you and another person were jointly and severally liable for a debt that is canceled, each of you may get a Form 1099-C showing the entire amount of the canceled debt. However, you may not have to report that entire amount as income. The amount, if any, you must report depends on all the facts and circumstances, including:

• State law
• The amount of debt proceeds each person received
• How much of any interest deduction from the debt was claimed by each person
• How much of the basis of any co-owned property bought with the debt proceeds was allocated to each co-owner, and
• Whether the canceled debt qualifies for any of the exceptions or exclusions we’ve described here.