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Level 4
April 26, 2020
Solved

If an Adult Dependent of a Tax Payer passes away while owing debt, does any of the Dependent's debt become the responsibility of the Tax Payer who claimed them?

  • April 26, 2020
  • 4 replies
  • 29 views
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Best answer by sjrcpa

If the taxpayer guaranteed the debt or cosigned for it, yes.

Otherwise it becomes a liability of the estate only.

4 replies

sjrcpa
sjrcpaAnswer
Level 15
April 26, 2020

If the taxpayer guaranteed the debt or cosigned for it, yes.

Otherwise it becomes a liability of the estate only.

The more I know the more I don’t know.
Level 4
April 26, 2020

Thank you again!!

sjrcpa
Level 15
April 26, 2020

YW

The more I know the more I don’t know.
BobKamman
Level 15
April 26, 2020

"Claimed as a dependent" is a red herring here.  The taxpayer who claimed the exemption is likely a beneficiary of the estate.  The decedent could have had assets, as well as debt.  Follow the assets -- if they end up with someone before the debts are paid, the recipient may very well be liable, regardless of what happened on a tax return.