Widowed client (2009) with student loan with a remaining balance of $22K. Been paying on the loan since 2005 and paid on time.
Was awarded SS disability in Jan 2011 and is literally unable to work.
Student loan forgiven Jan 2012 and 1099-C issued. Client has been insolvent since back surgeries etc. in mid 2010 did not allow her to work.
Can I use insolvency as reason for the 1099-C to not be taxable income? Is there a special rule because it was a Student Loan that was forgiven?