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Level 3
March 2, 2021
Question

Cancellation of Debt for Deceased Spouse

  • March 2, 2021
  • 6 replies
  • 42 views

Taxpayer filed TY2019 MFJ, but the spouse was deceased.

ForTY2020, Taxpayer is filing Single, but has received a 1098-C in the name and social security number of deceased spouse.

Does the Taxpayer have to pay tax on the cancellation of debt if the 1098 is in the deceased spouse's name and ss#... and the debt was not joint to begin with?

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6 replies

BobKamman
Level 15
March 2, 2021

No

tracie11Author
Level 3
March 2, 2021

Thank you Bob! My research revealed the same. It is always helpful to get consensus!

 

Tracie

sjrcpa
Level 15
March 2, 2021

The deceased's estate might have to pay tax on it, though.

The more I know the more I don’t know.