I'll try to keep the short with only relevant information. Father filed for SSDI in 2015, passed away February 2017, I (his only child, no existing spouse, etc) continued the claim. Court ruled in my Father's favor Oct. 2018, finally issuing the lump sum funds in November 2019 (yes a year later). The funds were accrued from 2015 - Feb 2017 ending with his passing. Father had $0 income from 2015 -2017.
SSA-1099 was issued as follows:
James Doe O/A/O
John Doe DEC'D
James Doe (my) SSN in Box 2 for Beneficiary's Social Security Number
1099 says Benefits for 2019 in the full amount, doesn't break down years of accrual
When entering this info into Turbo Tax, it is saying I need to be taxed approximately $6,000.00 for these funds when they were part of his estate, and would have been taxed $0.00 because of his lack of income during this period of time. Am I missing something, or does this need to be filed a different way? I was assured by SSA several times after my fathers passing I wouldn't have to worry about Taxes on his portion as it's part of his estate if awarded and I need not be concerned with Voluntary Tax Withholding. There were a lot of issues SSA kept running into with my Dad's SSDI after his passing which prolonged the entire process, so I wouldn't be surprised if this 1099 was issued with errors/mistakes.
Please help if you can, I'm losing sleep over this.