No, she needs to report as "Other income"
Retired Insurance Agent
Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is subject to SE tax. Also, renewal commissions and deferred commissions for sales made before retirement are generally subject to SE tax.
However, renewal commissions paid to the survivor of an insurance agent are not subject to SE tax.
Source: http://www.unclefed.com/IRS-Forms/2001/HTML/p53302.html
to report as income on line 21 go to Federal Taxes
Wages and Income
to Less Common Income
all the way to bottom to "Misc Income, 1099C income, click start
all the way to bottom again to "Other reportable income" say yes, and then enter, renewal commissions paid to the survivor of an insurance agent and dollar amount.
