Student loan 1099C for deceased taxpayer

Feb 27, 2008 1 Replies

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?


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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