What to do if you receive a 1099-C for a deceased spouse?

Don’t panic if you receive a 1099-C for your deceased spouse. You might not owe any or as much money at tax time as you think. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Can a deceased husband’s credit card debt be canceled?

Of course, if your husband had enough assets to pay his debts and had an estate, the credit card company would have lined up with the other creditors, expecting to get paid, so there would be no canceled debt. Are surviving spouses liable for unpaid debts?

Who is responsible for credit card debt after death?

After the death of a spouse, the survivor is generally only responsible to pay credit card debt from joint accounts. In almost all other cases, the deceased spouse’s estate is responsible for paying all debts, including credit card debts.

When do 1099-C cancellation of debt forms come out?

When the 1099-C Cancellation of Debt forms come out every year, they cause a lot of people huge amounts of worry and stress. Most of that worry is unwarranted or overblown, fortunately. In your case, you probably owe little or no any tax on your late husband’s canceled debt.

When does 1099-C go to estate return?

Daughter receives 2 1099-c for 2012 $14904 and $8514 that are in moms social security #. Mom probably was insolvent at time of death. Does this go on estate return for 2012 and does daughter have

What happens if I receive a 1099-S from my mother?

Just because you received a 1099-S does not mean it is “income”. You receive a step-up in basis in the value of the property; aka your basis is the fair market value of the home as of your mother’s date of death, so if you sold it within a year of your mother’s death, it’s doubtful there was a loss or a gain.

When does a daughter receive a 1099-C for 2012?

Daughter receives 2 1099-c for 2012 $14904 and $8514 that are in moms social security #. Mom probably was insolvent at time of death. Does this go on estate return for 2012 and does daughter have any tax consequence for 2012? See previous threads on these situations. 1099-C is for 2012.