Received a 1099-Misc reflecting a payment to the beneficiary of a deceased employee. This is nontaxable income and does not get reported on tax return. Correct?

[baptismfontpp]

I am the beneficiary

[MaryK1 · Accepted solution]

It depends- if it is a death benefit, it is tax free and does not have to be reported, just be sure to keep the 1099 with your tax documents.  The general rule is that if the decedent would have had to pay tax on it, you would be responsible for the tax (for example, if it was wages not included in the decedent's final return- this is rare)