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Visitor I

1099-C Student loan forgiveness- considered income parents plus loan when student dies

My son passed away in 2017. My husband signed on Parents Plus loan for his education. The loan was discharged after he passed but we received a 1099-C. Do we have to claim this as income?

1 Comment
TurboTax Specialist

1099-C Student loan forgiveness- considered income parents plus loan when student dies

Yes, I'm very sorry but you do need to report the forgiven debt on your tax return because your husband was obligated to pay back the Parent PLUS loan. This is such a sad situation and Congress could act to make things easier for grieving families, but they have not done so.