topic Re: 1099 MISC in Get your taxes done using TurboTax

Tax Year Prior to 2020: 1099 MISC

DJ99 — Wed, 24 May 2023 22:33:45 GMT

My mother passed away in 2016 and was receiving commissions from the sales of insurance. The three kids now split the commissions as an inheritance. Why does the 1099 mis in Turbo tax treat it as if it is a business. The business was dissolved when she passed. There is no business tied to these commissions.

Re: 1099 MISC

VictorW9 — Sun, 02 Feb 2020 19:35:07 GMT

Receiving a 1099 Misc is akin to receiving a self-employed income as such to be filed as a schedule C income. You will have to deduct all expenses that relates to that income.

Re: 1099 MISC

DJ99 — Sun, 02 Feb 2020 19:41:10 GMT

There are no expenses, the business was closed after she passed. Is it still considered as the same business? Us three kid inherited the commissions that will continue until the policy holder is deceased or no longer making payments to the insurance company.

Re: 1099 MISC

VictorW9 — Sun, 02 Feb 2020 19:52:59 GMT

This sounds like are receiving residual income from your mother's will or estate. The inheritance doesn't seem to be distributed through an estate and is coming in the form to the beneficiaries as a 1099 Misc which is what your mother would have been receiving if she was still alive. In any case you have to report it as income and the only logical place to report a 1099 Misc is on a schedule C.