I received a final check from my husband's vacation and accrued sick time. This was reported with a 1099 MISC. This was reported with his SS number but in the box it says "Estate of his name". They told me I would not have to pay taxes on this but when I put it in turbo tax it says I have to pay. A LOT! What am i doing wrong? Do I need to report this or not?
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I am not at all certain what you are reading that you are interpreting as the proceeds not being taxable.
The proceeds are not subject to withholding, but this is definitely taxable income (but not subject to self-employment tax).
If you received the funds, then you are required to report it on your income tax return.
This is basically income in respect of a decedent (IRD), that is reported by the recipient (either an individual or the estate).
See https://www.irs.gov/publications/p559#en_US_2021_publink100099579
But if you read this it seems as if it isn’t taxable but it makes me owe when I add it on turbo tax! Please help!
And this is what HHR sent me and told me it would not taxable.
I am not at all certain what you are reading that you are interpreting as the proceeds not being taxable.
The proceeds are not subject to withholding, but this is definitely taxable income (but not subject to self-employment tax).
I think I understand.
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agreed
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jkmcgill
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