My husband passed in 2017. His estate received a 1099-misc form for the rest of his PTO. How do I file for this income? Thank you. Jane Otto

[mystuff-jane]

Tom passed 10/11/2017

1099-misc total $3,985 - no federal taxes withheld

I am able to file as a head of household for 2018.  How do I file for this 1099-misc?

[ScruffyCurmudgeon]

Please indicate if the proceeds were received in 2018 or soon after he passed away in 2017

For 2017, did you file as Married Filing Jointly and indicated that your husband had passed away?

To answer your question correctly, the answers to above are important.

[mystuff-jane]

My husband passed end of October 2017.  For our 2017 returns, I filed Married filing Jointly and did indicate that he had passed.  The proceeds were received in early January 2018.  I just received the 1099-misc form.  Thank you so much for your help.

[ScruffyCurmudgeon]

Technically, the income received was Income in Respect to a Decedent (IRD).  The only issue of complexity that may arise occurs if a Form 706 Estate Return had to be filed because the Estate was large ($5.6 M) which is very rare.

So, that said, simply report the income with the entry of the Form 1099-MISC, and would recommend reporting as if, and it should be, showing in Box 3 of the 1099. 

[PKLFQZF]

So I have a very similar situation with my wife passing in 2020.  I received "For the Estate of my wife" a 1099-MISC for $6,925.88 for payment of vacation, sick leave final paycheck, etc.  I am filing jointly as normal.  If I understand the answer to the related question correctly and to clarify, I enter the 1099-MISC amount as income, therefore, I'll be liable for the taxes as part of our normal filing, or is their a credit I can show somewhere because of IRD (Income Respect to Decedent)?