FUNDS FROM DECEASED EMPLOYER TO SPOUSE

5 replies
50 views

My client (survivor) received a 1099-Misc for $6K to his name. These "benefit funds" are for accumulated and unused vacation, sick & personal days. How or where do I report this as is not his EARNED moneys? Also my understanding is that these funds are not taxable to survivor? How do I treat this, please help

ProSeries Basic

This topic has been closed for replies.

Taxes-by-Rocky

Level 7

Sounds like 'income in respect of a decedent' received by the beneficiary (as opposed to being received by the decedent's estate). That would likely make it includable in the income tax return of the recipient in the year of receipt. Check the IRD rules.

O

OchumareAuthor

Level 4

Thanks for your reply. Yes, in fact is considered income in respect of a decedent.

I am looking for assistance as to how to treat it/where to report it on the 1040. I already checked the IRD rules but does not specify where/how to report this particular scenario.

My main issue is not knowing how to report it as funds are being reported on a 1099-Misc and is not earned nor taxable income.

Just-Lisa-Now-

Intuit Community Champion

1099MISC isn't earned income.

Why wouldn't it be taxable income to his estate? or was it in the surviving spouses SSN?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Sign up

Login with SSO

Let's get you signed in

Login with SSO