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Level 1
posted Feb 2, 2020 10:32:21 AM

1099-MISC

My mother passed away in 2016.  The 1099 misc is for commissions on Insurance policies that her and my dad sold (bot deceased) and the three kids inherited.  Why does turbo tax want to treat it as a business.  The business they had was dissolved?

0 3 575
3 Replies
Expert Alumni
Feb 2, 2020 12:17:48 PM

The income was reported on 1099-Misc which means it is business income.  The residual income that you receive still counts as business income and needs to be reported on a Schedule C. 

 

This income is taxable for Social Security and Medicare in addition to Federal and State income tax.

 

Link to IRS website 1099-Misc, Independent Contractors

Returning Member
Feb 7, 2020 3:23:03 PM

WHY can't we get help on WHERE to see WHY a 1099-misc has STILL not cleared / accepted by IRS????  I was on phone with IRS for HOURS & the guy could NOT find a 1099-misc submission from TT QuickEmployer forms.

WHO can see the electronic 'paper trail' of WHERE this "submission" is???????  very frustrated with a possible penalty .... PLZ respond when I call

Expert Alumni
Feb 9, 2020 1:50:19 PM

I suggest you post a new question. 

This question is part of a thread addressing insurance payments from life insurance.