Turn on suggestions. Showing results for. Search instead for. Did you mean:. New Member. I received a C form. Click this link for more info on Cancelled Debt for Deceased Persons. Generally, if their only income is from Social Security benefits, a tax return for the deceased individual would not have to be filed. However, if the deceased person received other income as well, a portion of the Social Security income may be taxable.
For tax year , a return will have to be filed if:. However, if they lived on Social Security benefits alone, you don't include this in gross income.
If this was the only income they received, then their gross income equals zero, and you don't have to file a federal income tax return for them. Why sign in to the Community? Submit a question Check your notifications Sign in to the Community or Sign in to TurboTax and start working on your taxes.
There is no cost because you have to mail it in if you submit it. If you are due an additional refund, you do not have to submit it unless you want to. At the end of the answer, there are also links, in blue, on how to do so in TurboTax. It would be best to wait until you have received your refund from the tax return already submitted if you are expecting one.
This will prevent delays in receiving your refund and you generally have 3 years to amend, from the day your taxes are due or 2 if you paid taxes due to owing taxes. There usually are no penalties if you will receive a refund. WAIT until you receive your refund and then follow the instructions below to Amend. How do I amend my TurboTax Online return? At that time, you can then follow the instructions in this FAQ here to amend your tax return.
Will I have to pay taxes on my amend c I'm on as and food stamps and in low-income housing and this could really hurt me. If you can demonstrate that you were insolvent at the time the debt was cancelled, you may not have to pay any tax on Cancellation of Debt income. From MichaelDC. A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as income under the "insolvency" exclusion.
Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent. However, the debt cancellation must be reported and you must claim that you're insolvent on your return. The cancelled debt will then become excluded from income. In general, you must report any taxable amount of a canceled debt as ordinary income from the cancellation of debt on Form , U. Nonresident Alien Income Tax Return as "other income" if the debt is a nonbusiness debt, or on an applicable schedule if the debt is a business debt.
Caution: If property secured your debt and the creditor takes that property in full or partial satisfaction of your debt, you're treated as having sold that property to the creditor. Your tax treatment depends on whether you were personally liable for the debt recourse debt or not personally liable for the debt nonrecourse debt. If your property was subject to a recourse debt, your amount realized is the fair market value FMV of the property.
Your ordinary income from the cancellation of the debt is the amount of the debt in excess of the FMV of the property that the lender forgives. You must include this cancellation of debt in your income unless an exception or exclusion, discussed below, applies. The difference between the FMV and your adjusted basis usually your cost will be gain or loss on the disposition of the property.
If your property was subject to a nonrecourse debt, your amount realized is the entire amount of the nonrecourse debt plus the amount of cash and the FMV of any property you received. You will not have ordinary income resulting from debt cancellation.
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