deceased person

[JudyAl]

My spouse died in 2022 and 2022 will be his last tax return.  However, I know there is an issue and he will receive an 1099 in his SSN for year 2023, but it should have been my SSN.    Looking ahead, can I add his SSN to Turbotax, but I still file as a single person?     In other words, can Turbotax accommodate my problem or will I not be able to file with Turbotax for year 2023?   Thank you.

[xmasbaby0]

Very sorry for your loss.  For the year that your spouse died, you can still file a joint return.  That way, you will get the married filing jointly standard deduction of $25,900 (+ $1400 for each spouse 65 or older) which will lower the amount of income you are taxed on.

The SSA1099 can still be entered with your spouse's SSN on it, as can any other income received by your spouse in 2022.

In My Info, you will need to indicate that your spouse died. When his name is in My Info,  there is a screen early in the interview that asks "Do any of these apply to [name] ?’” where you will do that, and then a drop down will appear where you can enter the date he passed.

If you have qualifying dependent children you will be able to file as a qualifying surviving spouse  (QSS) for the next two years after this tax return.  Post back if you need further help.

[JudyAl]

Thank you.   What about the following year after his death?    Will I be able to use Turbotax to file without claiming him, since all I want to do is claim a 1099 in his SSN?

[Terri Lynn]

Hello, Judy,

I first want to say, I am sorry for your loss, Judy.

In answering your question, I am hoping I am addressing your specific issue.

I believe that you are speaking of receiving, what is more ommonly known as income in respect of a decedent,(IRD). 

Income in respect of a decedent refers to income that the decedent had a right to receive at the time of death, but that is not reported on his or her final return. It does not include earnings on savings or investments that accrue after death.

Say a taxpayer who has a substantial amount in money-market mutual funds dies on June 30th. Only interest earned up to that date would be reported on the final tax return. Earnings after that date are taxable to the beneficiary of the account, or to the estate.

That can create some hassles since the payer—a mutual fund, bank or broker, for example—will report income to the IRS on a 1099 form. 

 This income will need to be reported on your return i your  name and social security #.

For more information regarding "Income in Respect of a Decedent"please refer to :

IRS PUB 559  

"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." -IRS

So unless the estate received the income, the beneficiaries will need to report their share of this income on their own tax returns.

You can report the income as if it were in your own name and social seciroty number  on your tax return.

In TurboTax you will need to report this in the wages and income section, under the less common income setcion, as other miscellaneous income not reported any where else in the return. 

Hopefully this helps!

Best wishes going forward!

Thanks,

Terri H.

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