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?
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.