Hi,
I am in a very similar situation and have been pondering the 1099-NEC for several weeks now. My mother passed away June 2021 and I received her final check for vacation/sick leave soon after. I received the 1099-NEC to file on my 2021 taxes and it is a very significant amount of money. I was told by the Health Department where she worked that taxes were taken out of her final check, but I believe they would have only been required to deduct medicare/social security. I understand from this FAQ, how to enter the 1099-NEC without creating a Schedule C business, but my question is will this money be taxable? Sadly enough it was used to pay funeral expenses, which are also not tax deductible. Also, should the employer have sent a 1099-MISC instead? Thank you for your time!
