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!
