My mom receives 1099-misc from my deceased fathers insurance commissions. Should she file a schedule C and pay SE tax?

[MichaelL1 · Accepted solution]

No, she needs to report as "Other income"

Retired Insurance Agent

Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is subject to SE tax. Also, renewal commissions and deferred commissions for sales made before retirement are generally subject to SE tax.

However, renewal commissions paid to the survivor of an insurance agent are not subject to SE tax.

Source:  http://www.unclefed.com/IRS-Forms/2001/HTML/p53302.html

to report as income on line 21 go to Federal Taxes

Wages and Income 

to Less Common Income

all the way to bottom to "Misc Income, 1099C income, click start

all the way to bottom again to "Other reportable income"  say yes, and then enter, renewal commissions paid to the survivor of an insurance agent  and dollar amount.