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jjac05
New Member

We recieved a $600 check "because [Social Security] owes money to a person who was prevously enititled on this record and is now deceased". Is that taxable income?

Deceased was my father.
1 Best answer

Accepted Solutions
fanfare
Level 15

We recieved a $600 check "because [Social Security] owes money to a person who was prevously enititled on this record and is now deceased". Is that taxable income?

IRS Pub 559 --

"If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return.

Income in Respect of a Decedent

All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent.

How To Report

Income in respect of a decedent must be included in the income of one of the following.


  • The decedent's estate, if the estate receives it.
  • The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
  • Any person to whom the estate properly distributes the right to receive it."

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2 Replies
fanfare
Level 15

We recieved a $600 check "because [Social Security] owes money to a person who was prevously enititled on this record and is now deceased". Is that taxable income?

IRS Pub 559 --

"If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return.

Income in Respect of a Decedent

All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent.

How To Report

Income in respect of a decedent must be included in the income of one of the following.


  • The decedent's estate, if the estate receives it.
  • The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
  • Any person to whom the estate properly distributes the right to receive it."
ScruffyCurmudgeon
Level 7

We recieved a $600 check "because [Social Security] owes money to a person who was prevously enititled on this record and is now deceased". Is that taxable income?

To whom was the payment, the check, made?

The answer to your question depends very much on your answer

Social Security benefit payments are possibly subject to Federal Income tax depending on the amount of gross income the rcipient has for the year.

Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
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-------------------------------------No Not an Intuit Employee - Just donating my time
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