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[Tax Year 2019] 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?

Forum|Forum|7 years ago
June 6, 2019
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I do not plan on filing a return for him. What do I need to do with this information?

TurboTax Deluxe Windows

Best answer by JulieH1

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.

Considering your husband passed away in 2016, you cannot do a joint return this year. Therefore, there is not a return to add the income unless there was an estate opened. If there was no estate or probate opened or the estate was closed, then there is nothing you can add it to. If you want to be cautious you can put "deceased " on it and send to the IRS with a letter or you can address it later if they contact you over it.

If you are on the 1099-C as a joint recipient of the canceled debt, you need to include it on your return.

J

JulieH1Answer

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.

Considering your husband passed away in 2016, you cannot do a joint return this year. Therefore, there is not a return to add the income unless there was an estate opened. If there was no estate or probate opened or the estate was closed, then there is nothing you can add it to. If you want to be cautious you can put "deceased " on it and send to the IRS with a letter or you can address it later if they contact you over it.

If you are on the 1099-C as a joint recipient of the canceled debt, you need to include it on your return.

X

xgysgt

Does it make a difference in a community property state. My wife died in 2018. I just received the 1099-C from one of her creditors.

S

StratigosA08

Sorry for your loss.

The fact that you are in a community property state does not make a difference; however, as a widow you may file as Married File Jointly for the year of death, but you need not file that way if you prefer to file as Single.

Notwithstanding that, given that there is a 1099-C in her name, it may be more advantageous if you file as Single. You wouldn't get the advantage of Married tax rates, but you would not pick up any of her income.

If you don't file Married Filing Joint then joint and several liability for tax debt would not apply so even if they assessed your deceased wife, you would not be liable because you didn't file jointly.

Conversely, if you DO file jointly, then EVEN IF the 1099-C is in her name, you will be assuming responsibility for the tax implications of it.