Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I am working on my deceased husband's insolvency. I want to…

I am working on...

I am working on my deceased husband's insolvency

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I want to know if I have to list 100% of our checking/saving accounts to insolvency if I file married jointly

Accountant's Assistant: Is there anything else the Accountant should be aware of?

He received a 1099C due to death from Fed student loan and he has an American express discharge loan but I didn't receive 1099c for that canceled loan

Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
3/24/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,120
Experience: Taxes, Immigration, Labor Relations
Verified

I assume that the debt was cancelled AFTER his death - correct?

Your husband income tax return will include ONLY income he received before the day he passed away.

All income received after that are reported on the income tax return of his estate.

So that is not insolvency of your husband - but insolvency of his estate.

Include all assets and all debts the estate had on the day BEFORE the debt was cancelled.

Let me know if you need any help.

Ask Your Own Tax Question
Customer reply replied 3 months ago
He doesn’t have estate account
Customer reply replied 3 months ago
He doesn't have estate account, he
lost everything during the financial crisis of 2008 and
he retired
All assets we have is our checking/saving accounts

That makes no difference for tax reporting.

But income reported on form 1099C - is NOT his income and is not included into his income tax return - BECAUSE it was cancelled after his death.

So - when you will mention the date of death on his tax return - that will determine which income to include there.

Do not include 1099C with his tax return.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,120
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 3 months ago
What should i do with this 1099c?
Phone call session started

Just to summarize...

So far - that income reported on 1099C is not your husband's income,

but income of his estate.

I suggest simply to add a note - mention that he passed away on <date>

and that the debt was cancelled AFTER his death and belong to his estate,

but there is NO estate left - and no money to pay for filing the form 1041.

In most situations - that will work.

If for any reason the IRS will send you a question regarding that form 1099C - in this case you will file 1041 for the estate - but let first try to avoid that filing.

Ask Your Own Tax Question
Customer reply replied 3 months ago
Thank you for your help
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,120
33,120 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am permanently disabled legally ‘04 work car accident
I am permanently disabled legally ‘04 work car accident receive $800 after INS from SS Disability I have met my (3) three year monitoring period & been approved by the NELNET student loan discharged f… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
Is this true: filing a joint return as allowed for the year
Is this true: filing a joint return as allowed for the year of death - then you would need to report all income for both of you which includes a forgiven debt reported on Form 1099-C.… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
I rcvd a 1099C for forgiven student loan debt due to perm.
I rcvd a 1099C for forgiven student loan debt due to perm. disability for $40,000. I also recvd this past year a disability settlement for $22,000. Do I have to claim the disability settlement towards… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
I owe $125,000 in student loans (which are currently under
Hi I owe $125,000 in student loans (which are currently under IBR program). … read more
abci168
abci168
Principal
27 satisfied customers
MY son passed away we received a 1099 c from wells fargo on
MY son passed away we received a 1099 c from wells fargo on his student loan. It was discharged . Are we able to fill out a 982 form and how do we do it… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Of A forgave a second mortgage of 50K and credit card of 14K
B of A forgave a second mortgage of 50K and credit card of 14K and issued 1099C making our income 64k higher. Given the gov health care we could end up with a giant tax bill. My reading suggests that … read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
My name is ***** *****. My daughter died in September, 2015.
My name is ***** *****. My daughter died in September, 2015. She has since received two 1099-C's totaling 14,000+ for cancellation of student loans. I understand from a reply 6 years ago that this is … read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
Ed, , My son passed on 9/26/14 - he was 25. I rec'd a
My son passed on 9/26/14 - he was 25. I rec'd a lot of 1099-Cs as I sent his death cert and it was forgiven. Do I need to do an tax return for him? He was passed all of 2015 - obviously. Also, I took out a Parent Plus loan for him and I rec'd a 1099-C for $15,000...I wanted to see if there is any way I don't have to claim as income as he never finished the 2 year program. … read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
If i have an student loan that defaulted on but now im in
if i have an student loan that defaulted on but now im in the rehabiliation program i paid my first apyment so what will happened if i file taxes now… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
I'm ***** ***** and I have a question about insolvency test
Customer: Hi! I'm ***** ***** and I have a question about insolvency test (student loan discharge) in Oregon. Looking at filing separately vs married jointly. We are both on the loan of the home. Do I… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
I had student loans discharged this year, and a 1099C is
Hi, I had student loans discharged this year, and a 1099C is goin to be filed with the IRS, however, my loans are going to be reinstated. I need to know exactly what form I file with the IRS (it can't… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
We sold our home through a short sale that was on a VA loan.
We sold our home through a short sale that was on a VA loan. We received a Form 1099-C with an amt of discharge of $55,000 and a FMV of $70,000. Based on our reading of Pub 4681 and the Insolvency wor… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I had a student loan that was cancelled. Both my cosigner and I received 1099-Cs.do both o
I had a student loan that was cancelled. Both my cosigner and I received 1099-Cs.do both of us have to file it on our taxes or just me? I read that the debtor is to file it as income and the cosigner … read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
My husband is on perm disability. He got his student loan
My husband is on perm disability. He got his student loan of $87,000 cancelled. We recieved a 1099 c. We are now looking into getting the tax on this "income" excluded with insolvency. the student loa… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I received a 1099C for disability discharge of a student loan.
I received a 1099C for disability discharge of a student loan. My husband and I are filing separately this year. I am filling out the insolvency worksheet for form 982 and need to know if I have to in… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
My father had taken out school loans for me solely in his name.
My father had taken out school loans for me solely in his name. He has since deceased and the school loans have been forgiven. My mother received an 1099c for cancellation of debt. Is she liable? Her … read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
Facts re: debt cancellation: 1) Taxpayer had his school loan
Facts re: debt cancellation: 1) Taxpayer had his school loan cancelled after his death. 2) He was insolvent. 3) His assets included his 50% share of a house, which was co-owned with a non-spouse. 4) H… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I have just been told that my deceased son's student loan
I have just been told that my deceased son's student loan which I cosigned and have been paying for 2 1/2 years is being forgiven. My question is they will be sending me a 1099C and I am wondering 2 t… read more
abci168
abci168
Principal
27 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x