Janitor Bob Posted January 25, 2009 Report Share Posted January 25, 2009 Some of you may remember that my wife passed away in March 2007. She had a lot of debt and I had no real assets at that time, so was insolvent due to medical bills. At any rate, I paid off all of her debt in 2007....settling with various companies and receiving 1099-C for these in 2008. All of these were included on my tax return last year....since I was insolvent at the time, I filed for 982 to avoid taxes on the cancelled portion of the debts. Today in the mail I received a 2008 1099-C from Kohls Dept. Store for my deceased spouse (her name and SSN) for debt that I paid in 2007! Now what am I supposed to do? Do I have to include that in my current year return even though the SSN do not match? I was insolvent in 2007 when I paid the portion of the debt not forgiven), but the 1099-C has a debt settlement date of May 2008. If I include this 1099-C on my current return, I should also be able to include Form 982...but how can I if the debt settlement date is May 2008...I was not insolvent in May 2008. Should I try to get a corrected for 1099-C showing settlement date of 2007? Is there any way I can just foget this 1099-C? It is onlt $819.00.....would increase my taxes by only $120.00...but I jave already filed my current year return and really do not want to amend. What would you folks do? Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 25, 2009 Report Share Posted January 25, 2009 I would ignore it. taxbilly Quote Link to comment Share on other sites More sharing options...
jainen Posted January 25, 2009 Report Share Posted January 25, 2009 >>Is there any way I can just forget this 1099-C?<< I would ignore it. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 25, 2009 Report Share Posted January 25, 2009 Did you file a joint return in 08? If so, you need to include it, but you could still then exclude it since you were insolvent at the time the debt was forgiven. That way you should not get any nasty letters later from the IRS. If you did not file a joint return in 08, then you can ignore it, since it is not your SSN that would be matched to it. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted January 26, 2009 Author Report Share Posted January 26, 2009 Did you file a joint return in 08? If so, you need to include it, but you could still then exclude it since you were insolvent at the time the debt was forgiven. That way you should not get any nasty letters later from the IRS. If you did not file a joint return in 08, then you can ignore it, since it is not your SSN that would be matched to it. I filed Joint with deceased spouse in 2008.....I think I will ignore until they sent a nasty-gram, then amend to show it included then excluded with form 982...or should I just amend now and mail it in? ....But if I include it...then exclude it with Form 982....how would they know if it was ever included to begin with? Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 26, 2009 Report Share Posted January 26, 2009 When you say you filed joint in 2008 you are referring to the 2007 return, right? This 1099-C you received is on a 2008 form. The IRS will not question anything since they are not looking for a return with her social security number and therefore you can ignore it and not worry about it. taxbilly Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted January 26, 2009 Author Report Share Posted January 26, 2009 When you say you filed joint in 2008 you are referring to the 2007 return, right? This 1099-C you received is on a 2008 form. The IRS will not question anything since they are not looking for a return with her social security number and therefore you can ignore it and not worry about it. taxbilly Correct...The joint return I filed in 2008 was for tax year 2007. Quote Link to comment Share on other sites More sharing options...
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