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Level 2
February 22, 2022
Solved

Inherited 1099-Misc

  • February 22, 2022
  • 2 replies
  • 31 views

I received a 1099-Misc form from my deceased sisters workplace.  Box 3 was checked under other income.  When I told Turbotax that it was inherited, it still added tax owed.  Is that right?  I understood inherited income was not taxable. 

    Best answer by Anonymous_

    I am sorry for your loss.

     

    You should contact the Payer. However, since this is from your sister's place of work, it is most likely some form of compensation which would be taxable to you (even though you "inherited" it). This is commonly termed IRD (income in respect of a decedent).

     

    See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285932

     

    See also https://www.irs.gov/publications/p559#en_US_2021_publink100099579

    2 replies

    Level 15
    February 22, 2022

    I am sorry for your loss.

     

    You should contact the Payer. However, since this is from your sister's place of work, it is most likely some form of compensation which would be taxable to you (even though you "inherited" it). This is commonly termed IRD (income in respect of a decedent).

     

    See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285932

     

    See also https://www.irs.gov/publications/p559#en_US_2021_publink100099579

    kreynAuthor
    Level 2
    February 22, 2022

    It was for accrued sick leave, vacation etc.  Thanks for your help.

    Level 2
    March 6, 2022

    Where do you enter money received from a farm land inheritance.

    Critter-3
    Level 15
    March 6, 2022

    @8-1 

     

    Your question is too vague ... what exactly did you inherit ?   If land did you sell it or did the estate ?