June 1, 2019 12:06 AM My wife died in 2015. A few months later, a credit card company “forgave” the debt remaining on her credit card (sole owner) due to her death. Yesterday, I received a 1099-C form (in my late wife’s name) from that same credit card company.

What to do with 1099-C for deceased spouse?

My wife died in 2015. A few months later, a credit card company “forgave” the debt remaining on her credit card (sole owner) due to her death. Yesterday, I received a 1099-C form (in my late wife’s name) from that same credit card company. What do I do with this form? Thank you. June 1, 2019 12:06 AM

What to do with a 1099 C form?

I received a 1099 c form for my deceased husband. He passed away in 2016. I am not planning to file a tax return for him this year. What do I do with this information? I am very sorry for your loss. A 1099-C is a form a debtor sends when they cancel a debt. The canceled debt is considered income.

When do you have nothing to report on a 1099-C?

In the absence of an estate, then you have nothing to report. Assuming the Form 1099-C’s tax year states 2016 and if she had an estate established, then the estate would be responsible for paying the tax on the income. In the absence of an estate, then you have nothing to report.

What does a 1099-C mean on a credit report?

A Form 1099-C is an informational form sent by the creditor to the IRS, with a copy sent to you. It means that your debt meets certain qualifications; for example, that it is considered uncollectible.

What to do if you receive a 1099-C?

If you receive a 1099-C for a debt you were not aware was discharged, clarify the status of the debt with the creditor. If they are following the old rule, request that they rescind the 1099-C under Internal Revenue Bulletin 2016-48, T.D. 9793. Rescinding the 1099-C will alert the IRS that it was issued in error.

Why did I get a 1099-C bankruptcy form?

At its most basic level, a 1099-C reports a debt that was canceled, forgiven, never paid back or wiped out in bankruptcy. Here are some reasons you may have gotten a form 1099-C: You cut a deal with your credit card issuer and it agreed to accept less than you owed. You had a student loan or part of a student loan forgiven.