1099-c

[KTAXES]

married filing joint return. Taxpayer died and the student loan that he took out for his daughter was cancelled. The spouse received a 1099C with her husbands name and SS#. Does she have to pay taxes on the amount cancelled? If she does in the interest in box 3 taxable. She doesn't think she is liable for her husbands debt.

[Burke]

If she is filing a joint return for the year that the loan was cancelled, it goes on the 1040, including the interest. Perhaps she would like to file MFS? Since the loan was cancelled, she is not responsible for repaying it to the institution that granted it.