Student loan 1099C for deceased taxpayer

tomchand · Joined: 25 Aug 2007 Posts: 6

Taxpayer dies in January 2007. Heirs just received 1099C (debt
forgiveness) for balance on student loans (about $15,000) . Not in
bankruptcy and I don't believe she was insolvent.

Has anyone run into this - how did you handle?

Should properly be shown as income of individual or estate?

Tips, tricks or pitfalls?

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Archived from group: misc>taxes>moderated

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

wrote:

> Taxpayer dies in January 2007. Heirs just received 1099C (debt
> forgiveness) for balance on student loans (about $15,000) . Not in
> bankruptcy and I don't believe she was insolvent.
>
> Has anyone run into this - how did you handle?

Something is missing. If the decedent wasn't insolvent the loans should
have been paid from the estate. If the estate paid them there shouldn't
have been a 1099-C. Can you fill in the blanks?

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Phil Marti
Clarksburg, MD

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