Federal Tax Determination

[dougjoha]

I am doing the tax return for my deceased brother in law.  It is showing a tax due both in federal & State.  It is showing a self employment tax but he was never self employed.  He did receive a 1099-Misc by his former employer in additional to his pension which he received every year for additional medical expenses above Medicare.  He was on Medicaid in a nursing home and they had to be paid all his income less $45 for misc. incidentals.  What was I suppose to say this $1000 was for?  He never paid income tax on his past years.

[DMarkM1]

Delete the 1099-misc entries and any Self-employment entries.  You will enter this income as "Other reportable income" under the "Wages & Income" tab.

1. Scroll down to "Less Common Income"
2. "Show More"
3. "Start/Revisit" "Miscellaneous Income"
4. "Start/Revisit"  "Other Reportable Income"
5. "Yes"
6. Enter description "1099-Misc care" (even though it says not to)
7. Enter the box 3 amount

Since this was not earned income the schedule c should not generate.

[dougjoha]

I asked about why the IRS was showing other income rpeoted on a 1099 as self emplymnet.

The response was:

Delete the 1099-misc entries and any Self-employment entries.  You will enter this income as "Other reportable income" under the "Wages & Income" tab.

Scroll down to "Less Common Income" "Show More" "Start/Revisit" "Miscellaneous Income" "Start/Revisit"  "Other Reportable Income" "Yes" Enter description "1099-Misc care" (even though it says not to) Enter the box 3 amount

Since this was not earned income the schedule c should not generate.

However when I could not follow these steps because I don't have a "wages & Income" tab.  It says Wages & Salaries.  It only has W-2 I can not scroll down so I do not see "Less Common Income" or the rest of your steps.  I am using Turbo Tax Home & Business,  Should I instead get a 1040EZ or other form or try e file? 

[KathrynG3]

No, Form 1040EZ is no longer available. 

The steps provided were for TurboTax Online.

For TurboTax Home & Business, follow these steps:

1. Remove Form 1099-MISC
   1. In the step-by-step, click on the Search in the upper right corner.
   2. Enter 1099misc in the search window 
   3. Click the Jump to link in the search results.
   4. At 1099-MISC Summary, select Delete and Yes.
2. Remove Schedule C
   1. Select the BUSINESS tab and Continue.
   2. At How do you want to enter your income? select I'll choose what I work on.
   3. At Let's gather your business info, select Update at Business Income and Expenses.
   4. At Here's the business info we have so far select Delete and Yes and Done.
3. Enter Form 1099-MISC as Other Income so that it is not taxed as self-employment income.
   1. Select PERSONAL tab.
   2. Select Personal Income and I'll choose what I work on.
   3. Scroll down to the last category, Less Common Income.
   4. Select Miscellaneous Income, 1099-A, 1099-C and Start.
   5. At Let's Work on Any Miscellaneous Income scroll down to Other Reportable Income and select Start and Yes.
   6. At Other Taxable Income, enter a description naming the Payer and enter the amount and Continue and Done.

To see this income, go to Forms Mode and select Schedule 1 from the Forms in My Return. You will see the amount posted on Line 8.

Our condolences for your loss.  If he will receive a refund, include Form 1310 in the return so that the refund can be issued to the personal representative. See: Can I file Form 1310 in TurboTax?

You may wish to review this resource for more tax guidance about your situation: Death in the Family.
For full details, see IRS Resource: 2020 Publication 559: Survivors, Executors, and Administrators.

@dougjoha