Do I need to enter the SSA-1099 deceased beneficiary O/A/O information on my return? This was taxed as part of my mother's estate. If so, how do I zero out taxes due?

[lgarf]

Because of the timing of when my mother passed away, she was owed one month of Social Security, but it was withheld by the SSA until we filed the SSA-1724 form. SSA paid me directly as the beneficiary. I included the one month payment in her MA estate return, as it was part of the estate. I would expect that it should not be further taxable, but I have received a SSA-1099-SM form from SSA. When I enter it in TurboTax it does not provide an option to make it non-taxable. And I'm not able to edit the 1040 form directly (at least at the point I am in entering information). Do I need to enter the SSA-1099 information? Am I allowed to make it non-taxalbe? If so, how?

[pk]

all items received  in respect of the decedent is accounted for either in the estate return  or in the final/ last return  filed for the decedent. The beneficiaries are not taxed on the amount --- just ignore the SSA-1099 ( if it has been already allowed  for in the estate filings ). If you enter it in your return then this will become taxable to you.

[bwcathe]

@pk I have a similar situation.  I agree your answer makes sense.  I don't know about the person asking the question above, but my SSA-1099 has my SS# on it even though it was money owed to my mother. Does that change the answer?

[pk]

@bwcathe , only thing I can think of is that SSA must be aware that you are the trustee or the sole beneficiary of your mother.  If you have already filed the last/ final return for your mother, you can amend that return showing the SSA-1099 and include a note explaining that this  income is in respect of the decedent and therefore part of the "closed" estate. Else , you just accept the amount and include it on your return ( and pay any taxes due ).

[Anonymous]

wrong IRD is reported on estate return but is taxable to the recipient.  IRD includes unpaid wages, IRA 's, dividends declared b/4 death paid after death.  

[Anonymous38]

What if the decedent did not have a filing requirement (and didn't file)? Would it still be ignored? Or would it need to be claimed (and taxes paid on it)?

[SamS1]

It all depends on how the income was reported.  If the 1099s and SSA-1099s are in the decedents name and social security number and there is no filing requirement, then you are good to go.  Theoretically, any income received after date of death should be reported on the estate's tax filing, form 1041.  In a perfect world, at death, the decedent's assets should be re-registered into the name of the estate with a separate EIN so all income after that date would be reported to the estate through the 1099s.  The estate would then report the income on the estate's tax return.  

If you closed the estate and distributed the assets within 1 year, then you shouldn't have any problems not filing a return.  Assuming all the income was reported to the decedent's social security number.

[dfulcoly]

Similar question....It took quite a while to get my mom's final SS check and I had to file to get it.  The payment was deposited but the form SSA1099 has my name and SS# but references her SS# in box 8.  It has O/A/O designation for me. 

Do I need to claim this on my taxes and pay tax on it???? 

[LindaS5247]

If the form SSA-1099 is in your name, you must include it on your tax return, even if it is for a small amount.

Depending on your other income, part of this amount may be taxable. TurboTax will automatically calculate the taxable part for you.

Follow the prompts and answer all questions in TurboTax when entering your Form SSA-1099.

Click here for additional information on entering Form SSA-1099 in TurboTax.

A deceased beneficiary may have been due a Social Security payment and/or a Medicare Premium refund prior to or at the time of death.

A Social Security payment due a deceased beneficiary may be paid to a family member or a legal representative of the estate.