Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
daveh2724tt
New Member

Do I have to pay taxes on a one-time inheritance Soc Sec deposited to my mom's acct late May, she died mid May so they withdrew it and paid it to me and my sister?

I got a SSA-1099 for the amount I received, but it should be my mom's income and my inheritance, not my income.  She was entitled to the payment since it was for April and she lived all of April.

1 Best answer

Accepted Solutions
MichaelL1
Level 15

Do I have to pay taxes on a one-time inheritance Soc Sec deposited to my mom's acct late May, she died mid May so they withdrew it and paid it to me and my sister?

You are correct it was your mother's income and should not be taxed by you.  Social Security took the money back to make sure the correct party gets it, which would have been the executor (which I assume is you).

Social Security will not issue a new SSA-1099 so this is what I would do.

#1.  report it

#2 see how much actually gets taxed as only up to 85% of SS can be taxed.

#3 take a deduction on line 21 of your return for the amount that might be taxed.

Click on “Take me to my return” button.

Click on Federal tab (left-hand side of screen).

Click in Wages and Income (near top of screen)

 Scroll down to Less Common Income.

Click on Start next to Miscellaneous Income.

 Click on Other reportable income.

 Follow the questions and then report this a negative amount.

The amount would be taxable income on a 1041 for your mother if one is required to be filed.


View solution in original post

3 Replies
MichaelL1
Level 15

Do I have to pay taxes on a one-time inheritance Soc Sec deposited to my mom's acct late May, she died mid May so they withdrew it and paid it to me and my sister?

Is your SSN on the the 1099 SSA?
daveh2724tt
New Member

Do I have to pay taxes on a one-time inheritance Soc Sec deposited to my mom's acct late May, she died mid May so they withdrew it and paid it to me and my sister?

Yes, in box 2
MichaelL1
Level 15

Do I have to pay taxes on a one-time inheritance Soc Sec deposited to my mom's acct late May, she died mid May so they withdrew it and paid it to me and my sister?

You are correct it was your mother's income and should not be taxed by you.  Social Security took the money back to make sure the correct party gets it, which would have been the executor (which I assume is you).

Social Security will not issue a new SSA-1099 so this is what I would do.

#1.  report it

#2 see how much actually gets taxed as only up to 85% of SS can be taxed.

#3 take a deduction on line 21 of your return for the amount that might be taxed.

Click on “Take me to my return” button.

Click on Federal tab (left-hand side of screen).

Click in Wages and Income (near top of screen)

 Scroll down to Less Common Income.

Click on Start next to Miscellaneous Income.

 Click on Other reportable income.

 Follow the questions and then report this a negative amount.

The amount would be taxable income on a 1041 for your mother if one is required to be filed.


Dynamic AdsDynamic Ads
Privacy Settings
v