How do I enter a 1099-MISC from a death benefit payout?

[jbrancj]

As a beneficiary, I received a 1099-MISC from my father's job. He passed away and his job paid out his vacation/leave pay, etc.   to me.    I entered this as "Other Income" in Turbo Tax. Turbo tax shows that I will owe taxes on this money.  Is this correct?   Are these benefits taxable?   Per the statement I received, it looks like they only took out 1.45% Medicare taxes from it.

[MaryK4 · Accepted solution]

Yes, you will have to pay income taxes on this.  This is Income in Respect of a Decedent - you are required to pay the income taxes because it is compensation from working.  This represents the income paid after your father's death.  To look at it another way, if your father would have received the money, he would have to pay the income taxes then he would have gifted it to you (the amount would be less because the IRS taxed him).