Filing Form SSA-1724 Results in SSA-1099 in Beneficiary's Name

Forum|Forum|3 years ago
January 7, 2023
1 reply
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This seems like the simplest situation, but I cannot find a firm answer.

Because of the timing of my mother's death in 2022, I had to file form SSA-1724 in order to receive her final Social Security payment. There is no estate, and thus no estate taxes, no K-1, no 706, etc. I am the sole heir, and that final SS payment was made directly to me. This resulted in me receiving form SSA-1099-SM, with Social Security reporting that final payment as income paid to me under my SSN, but "on behalf of" my dec'd mother.

As I understand it, this would be classified as IRD (Income in Respect of a Decedent), and should only be taxable to me in the same way as it would have been taxable to her. She had no other income and would not have paid taxes at all in 2022.

Do I have this right? If so, I cannot figure out how to report this income on my return without it being taxable to me. I wouldn't have guessed this to be a rare scenario. Any guidance would be wonderful. Thanks!

TurboTax Home & Biz Windows

Bsch4477

Level 15

How is IRD taxed? IRD is income that would have been included in the decedent’s tax returns, if they were still living but was not included in the final tax return. Where the IRD is reported depends upon who receives the income. If it is paid to the estate, it needs to be included on the fiduciary return. However, if IRD is paid directly to a beneficiary, then the beneficiary needs to include it in their own tax return.

DirectorBoyAuthor

Level 2

Right, and in this case, it was paid directly to the beneficiary (me) and must be included on my tax return. I just don't know how to do that without being taxed on it, since she would not have been taxed on it had she not passed away.