Can 2018 1099G sent to deceased parent for 2016 ag payment paid to heirs and be reported on heirs tax return?

[mharrel]

Parent died in 2016, her 2016 return was filed and the 2017 return filed and estate closed.  CCC payments from USDA FSA were made to each heir according to the estate settlement order not to parent since the payment was made in 2018. Can the heirs report their share of the income paid to each one and reference parent's name and SS number?  USDA FSA said that was the only way to make the 2016 Cotton Ginning Cost Share pay since parent was alive at that time.  How will I receive the answer to my question, by email?

Thanks, [PII removed]

[AnnetteB · Accepted solution]

If the 2018 Form 1099-G was issued in your parent's name and Social Security number, you should just keep it for your records.  The payment that was received by the heirs would be considered a cash inheritance and does not need to be reported as taxable income.