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My name is ***** ***** and I have a question about a 1099C.

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My name is *****...

My name is ***** ***** and I have a question about a 1099C. My daughter defaulted on a student load that I cosigned for. I paid it with money from my IRA. I got a 1099C for the amount written off (10,000.00) and so did my daughter, but she also got a 1098 for 15000. interest paid. Why did both of us get the 10000. hit but only she got the interest deduction?

Accountant's Assistant: Thanks. Can you give me any more details about your issue?

Do both of us have to add the 10000 to our taxable income? Seems like only one of us should have to.

Submitted: 2 years ago.Category: Tax
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Answered in 10 minutes by:
2/26/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,303
Experience: Taxes, Immigration, Labor Relations
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You stated that you PAID your daughter student loan - correct?
If so - that is why your daugher received form reported her student loan interest.

As you likely not paid the full loan and it partially form forgiven - that is why you received 1099C reported forgiven amount.

Because you both were responsible - multiple debtors - each received that reporting forms - that is based on requirements.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

Generally that forgiven debt may be excluded - if you or your daughter is insolvent - but you may not exclude it - ONLY one person is included it into income - not both.

.

Regarding student loan interest deduction - you also may be eligible to deduct it if at the time the loan was taken your daughter was your dependent.

.

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