I received a 1099-Misc representing a decedent's accrued vacation and last pay check that was paid into a checking account for which I was the TOD beneficiary. The gross payment was $4,000, but FICA taxes of $306 was properly withheld so only the net amount of $3,694 was actually deposited into my account.
Here's the question: the 1099 reported $3,694 in Box 3. I think the proper amount to be shown was $4,000. Obviously owe less tax this way, but is it right?
