Hello, Judy,
I first want to say, I am sorry for your loss, Judy.
In answering your question, I am hoping I am addressing your specific issue.
I believe that you are speaking of receiving, what is more ommonly known as income in respect of a decedent,(IRD).
Income in respect of a decedent refers to income that the decedent had a right to receive at the time of death, but that is not reported on his or her final return. It does not include earnings on savings or investments that accrue after death.
Say a taxpayer who has a substantial amount in money-market mutual funds dies on June 30th. Only interest earned up to that date would be reported on the final tax return. Earnings after that date are taxable to the beneficiary of the account, or to the estate.
That can create some hassles since the payer—a mutual fund, bank or broker, for example—will report income to the IRS on a 1099 form.
This income will need to be reported on your return i your name and social security #.
For more information regarding "Income in Respect of a Decedent"please refer to :
IRS PUB 559
"Income in respect of a decedent must be included in the income of one of the following.
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The decedent's estate, if the estate receives it.
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The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
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Any person to whom the estate properly distributes the right to receive it." -IRS
So unless the estate received the income, the beneficiaries will need to report their share of this income on their own tax returns.
You can report the income as if it were in your own name and social seciroty number on your tax return.
In TurboTax you will need to report this in the wages and income section, under the less common income setcion, as other miscellaneous income not reported any where else in the return.
Hopefully this helps!
Best wishes going forward!
Thanks,
Terri H.
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Terri Lynn
