I should’ve known better.

Robin needed a loan. Said it was for a “reliable vehicle” to help with patrols. I co-signed. I figured, he’s responsible enough. He fights crime. He saves lives. Surely, he can handle monthly payments.

I was wrong.

He defaulted. Now, I’m on the hook for the loan. And to make matters worse, there are tax implications.

How This Became My Problem

When you co-sign a loan, you’re telling the bank:

• “I trust this person.”

• “If they don’t pay, I will.”

• “I have no choice in the matter.”

Robin missed months of payments. The lender came straight to me, demanding the full balance. So now, instead of using my money to upgrade Batmobile armor, I’m paying off Robin’s bad financial decisions.

But here’s the real kicker—this isn’t just about losing money. The IRS gets involved, too.

The Tax Nightmare

Most people don’t realize that defaulting on a loan doesn’t just hurt your credit—it can also come with a tax bill. Here’s why:

1. Canceled Debt = Taxable Income

If the lender forgives part of the loan, they report it to the IRS as “canceled debt.” The IRS treats this as taxable income.

Translation: I could end up paying taxes on money I never even received.

2. Potential Gift Tax Issues

Since I’m the one covering Robin’s debt, the IRS might view this as a “gift.” If I pay over $18,000 in a year, it could trigger gift tax reporting requirements.

I don’t give gifts. Especially not ones that cost me thousands of dollars.

3. My Credit Took a Hit

Even though I didn’t miss the payments myself, the late payments are now on my credit report. And if I ever need a loan for something important—like emergency Batcave repairs—I’ll be dealing with higher interest rates.

What Happens Next

I told Robin two things:

1. He’s paying me back. I don’t care how many extra patrols he has to pull.

2. He’s filing Form 982 with the IRS if any of this debt is forgiven. It’s his problem, not mine.

As for me? I’m never co-signing anything again. Not for Robin. Not for Nightwing. Not even for Superman.

Final Thoughts

Co-signing a loan feels like a team effort—until one person screws up. Then it’s just your problem.

If you’re thinking about co-signing for someone, don’t. Even if they wear a cape. Even if they fight crime. Even if they call you “Boss.”

Because when they fail to pay, you’re the one who suffers. And the IRS is always watching.