Help on a 1099C

[dsantana]

I have a new Client which her spouse (husband) passed away in 2017. Her husband had a student loan in his name.
She just received a form 1099C for the student loan. Is this a taxable event to her? Is there an exemption she can claim?- it is for 74K!

[taxea]

I have a new Client which her spouse (husband) passed away in 2017. Her husband had a student loan in his name.
She just received a form 1099C for the student loan. Is this a taxable event to her? Is there an exemption she can claim?- it is for 74K!

Who's SSN is on the 1099c? If his it goes on his 1040 or a MFJ in his name.

[Burke]

If he was solely responsible for loan, and spouse and/or child was not a signatory, she can file MFS for 2017 I believe, and avoid reporting this. Not that I am advocating abandoning the ethical responsibility for repayment to the lender! I am also assuming spouse is legally responsible for deceased's final 1040, which may not allow this to be of any benefit anyway.

[dsantana]

I have a new Client which her spouse (husband) passed away in 2017. Her husband had a student loan in his name.
She just received a form 1099C for the student loan. Is this a taxable event to her? Is there an exemption she can claim?- it is for 74K!

The social security number on the 1099C is on Husband.

[DonB]

The social security number on the 1099C is on Husband.

IMO the widow is most likely responsible for reporting this on a MFJ or MFS return. I would be looking at the insolvency exception.

[Burke]

The social security number on the 1099C is on Husband.

I know that. But these forms can only show one SSN on the form, just like 1098's, etc. She may have been a co-signer. Under the circumstances, since she has to file his return anyway for 2017, I don't see how she can avoid it.