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jokelley1
Returning Member

1099-MISC for deceased husband

I received a final check from my husband's vacation and accrued sick time.  This was reported with a 1099 MISC. This was reported with his SS number but in the box it says "Estate of his name".  They told me I would not have to pay taxes on this but when I put it in turbo tax it says I have to pay. A LOT! What am i doing wrong?  Do I need to report this or not?

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1 Best answer

Accepted Solutions

1099-MISC for deceased husband

I am not at all certain what you are reading that you are interpreting as the proceeds not being taxable.

 

The proceeds are not subject to withholding, but this is definitely taxable income (but not subject to self-employment tax).

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5 Replies

1099-MISC for deceased husband

If you received the funds, then you are required to report it on your income tax return.

 

This is basically income in respect of a decedent (IRD), that is reported by the recipient (either an individual or the estate).

 

See https://www.irs.gov/publications/p559#en_US_2021_publink100099579

jokelley1
Returning Member

1099-MISC for deceased husband

But if you read this it seems as if it isn’t taxable  but it makes me owe when I add it on turbo tax!  Please help!8828A154-E88C-474F-BF77-2F2A8DDC42E9.png

 

jokelley1
Returning Member

1099-MISC for deceased husband

And this is what H50F20788-E5A7-41D5-8996-7FEB7DF3FAD1.pngHR sent me and told me it would not  taxable. 

1099-MISC for deceased husband

I am not at all certain what you are reading that you are interpreting as the proceeds not being taxable.

 

The proceeds are not subject to withholding, but this is definitely taxable income (but not subject to self-employment tax).

jokelley1
Returning Member

1099-MISC for deceased husband

I think I understand. 

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