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1099C to deceased spouse

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    1099C to deceased spouse

    Spouse received a 1099-C for cancellation of 8,000 credit card debt in deceased husband's name and ssn. I can't find anything on IRS site that says spouse (my client) is responsible for her husband's debt. He died in 2011 and debt was cancelled in 2012, therefore, the 1099-C from Wells Fargo. Any help is appreciated. Thanks.

    #2
    Just found a similar thread but in a community property state and consensus was that surviving spouse not liable for deceased husband's 1099-C. NJ is no community property state but I'd appreciate anyone's thoughts on this anyway. Thanks.

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      #3
      1099-C to deceased taxpayer

      Might be an issue to the tp's estate and as to any property jointly held by TP and surviving spouse, such as reduction of basis or something.
      Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.

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        #4
        If the deceased had income and a return would be required it would report there. The widow would have to file MFS to avoid reporting it on her return.
        In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
        Alexis de Tocqueville

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          #5
          He died in 2011. His estate, very small, had no income in 2012. Wife files single in 2012.

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            #6
            I would say she is in the clear. The IRS can go after him if they want.
            In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
            Alexis de Tocqueville

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              #7
              I agree. Thanks all.

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