What would you like to do?
If your husband who died with no will had credit card debt in his name received 1099-C cancellation of debt must you list this income on tax return?
You must include all reportable income on the final tax return. Under section 61 of the Internal Revenue Code, forgiveness or discharge of indebtedness is gross income for tax purposes, so looks like that is what you need to do.
42 people found this useful
Was this answer useful?
Thanks for the feedback!
Who is responsible for credit card debt if your spouse dies and the credit card is in his name only and husband leaves everything to his son?
%DETAILS%. Answer . The "estate" of the deceased, including assets and debts are filed in Probate Court. If there is a will, that also enters into the filing. The way it …is distributed is dependent on the state of residency governing statutes. In some states the estate needs to exceed a specified amount, before a filing is required. Most states allow the surviving spouse, to keep the majority of assets, including the homestead. Under, of course, the provisions of the secured lending contract,(mortgage), if that applies. Whatever is not exempted and/or distributed by law to the surviving spouse is used to pay off outstanding debts.\nIf there are no attacheable assets, the debt in this situation is not collectable..
Answer . It should.\n. \n . \n Yes, and the debtor will receive a 1099C from the creditor, the amount shown on the form is considered taxable income under IRS rules and… must be reported on the debtor's tax return as such.
Is the husband responsible for a credit card debt if he and his wife are not legally divorced but she has credit cards in her name only and racks up a large debt?
Answer . \nYes, you are married. For years I didnt even work or have credit cards, but I established credit due to my husbands last name, because we are married.
Debt cancellation is a type of credit insurance service provided by the credit card company usually for a monthly fee. In most cases, the card company will wave the outstandin…g balance on your card in case of your death or long term illness. The fee charged is a fixed percentage of your monthly outstanding balance. Debt cancellation is usually sold in conjunction with debt suspension and is termed DCDS. Debt suspension is a similar type of service, but instead of canceling the outstanding debt, the monthly payments may be suspended for a short period of time such as one year in the case of involuntary unemployment or some other type of unexpected life events.
If you receive a 1099 cod but intend to repay the debt do you have to claim on your tax return as income?
Yup. Your intentions? Didn't you intend to pay the loan/debt as agreed when it was made? The reality is, you didn't. and the creditor already reported it as income, and …paid tax on it. He intended to use the money you were supposed to pay, by the way. maybe to feed his family.
They can, and are actually required, to submit your debt to the IRS.. If they have written the debt off, it is essentially income to you. It is as if they gave you the amount… of the debt. Which means that you have to pay income tax on that income.
If my husband dies and leaves credit card debt and our childrens parent plus loan debt am I responsible for assuming the debt in PA?
not if you have death insurance on the loan and credit cards
The assumption is that the wife will inherit at least half, if not all, of the husband's assets. That will normally include the property securing the line of credit. And the e…state has to liquidate all assets before they can transfer them to the spouse. So one way or another, the wife does end up resolving the debt. If the assets are not enough to cover the debt, the real property may have a lien placed against it to cover those debts.
Generally, yes. As a married couple, your have some "joint" financial assets and liabilities. If one of you has a credit card (even if it is just in the name of that one perso…n) and runs up a bill, the other cannot "hide" from the creditor. This is almost always the way the court will look at things.. It's an already difficult situation, but if two people are married and one is out spending their joint funds or attaching assets held in common (by building debt), the "correct" course is usually some kind of "counseling" for the couple or "discussion" between the two. If things are serious, consult a professional and soon - before it gets worse. The attorney is usually free or cheap - at least on an initial consultation. Good luck sorting this one out.
Who is responsible for credit card debt if your spouse dies and the credit card is in his name only?
It all depends on what state you live in. Contact the credit card companies they can tell you
The husbands estate is responsible, but not the wife directly. The amount of the husbands debt will be subtracted from his assets after his death. His wife will usually inheri…t what is left, unless the husband left other instructions in his will (ie leave everything to charity). If the husband dies and his debt is larger than his assets, then the creditors usually lose the difference. This is all handled through probate court, and a judge can choose who gets what.
The deceased's estate is going to be responsible. The spouse can be held as a beneficiary of the costs and by inheriting less from the estate.
The credit that was in his name only will not affect your credit in anyway. They may be able to come after his estate. Contact an attorney for more details with that end of it…. I would let them know he died and if they ask or keep harassing you send them the death certificate.
The answer depends on the details such as: . When the account was opened whether you live in a community property state What was purchased- did you benefit from the purc…hases Whether your property was owned as tenants by the entirety . You should consult with an attorney before paying those credit cardbalances. .
Paypal has turned out to be the lnaideg credit card processor in internet. The reason, I think it is quite easy for the buyer to setit up and also the commission is far below …others. They are very reliable company as far as my experience
The wife is not directly responsible unless named on the credit card. The estate has to pay the debts before she can inherit anything.