My husband died in January 2009 without an estate. I was an authorized user on four of his credit cards. The credit card companies wrote off the debt and I am now receiving 1099-C forms addressed to my husband. Will I be held responsible to paying taxes on these 1099 forms and what do you recommend?

ANSWER

Expert Cory Bunger's Answer:

If you were merely an authorized user and not an actual account owner, then you would not be liable for the cancellation of debt income.  If your husband's estate was insolvent (total liabilities greater than total assets) prior to the debt being cancelled, then the cancellation of debt income is not taxable.  If you are being held personally liable for his credit card debt, the insolvency exemption can be used for yourself as well.  Assuming you were insolvent prior to the debt being cancelled.   

Cory Bunger, CPA

North Carolina

17 yrs experience

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