1099-MISC

[uwm1855]

I received a 1099-Misc representing a decedent's accrued vacation and last pay check that was paid into a checking account for which I was the TOD beneficiary.  The gross payment was $4,000, but FICA taxes of $306 was properly withheld so only the net amount of $3,694 was actually deposited into my account.

Here's the question:  the 1099 reported $3,694 in Box 3.  I think the proper amount to be shown was $4,000.  Obviously owe less tax this way, but is it right?

[JulieS]

Yes, it is right. You only received $3,694, so they can't give you a 1099-MISC showing a higher amount.

Because it is in box 3, other income, it will be taxable income, but not subject to self-employment tax..