Royalties Received for Deceased Wife

Forum|Forum|2 years ago
April 15, 2024
2 replies
14 views

TP received a 1099-MISC for his deceased wife's oil royalties. The 1099 lists the decedent's SSN. The royalties were deposited in the TP's joint bank account.

How do I enter the 1099-MISC in PS so that the TP pays tax on the royalties? I don't see a section on the 1099-MISC Wks to do this.

There will also be a nonresident state return filed for the royalties.

Thanks for you help.

ProSeries Professional

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Best answer by IRonMaN

You don't need to complete a 1099 in the software. Just directly enter the royalties on schedule E. Or if you are really into completing 1099s, you can put his name on the 1099 worksheet. As a side note, tell your client to update the ownership information with the entity paying the royalties so you don't have to worry about this every year.

IRonMaN

Level 15

Enter if the same way as you would if his name was on it.

Slava Ukraini!

D

david3Author

Level 7

Thanks, but I wasn't clear that she passed away in 2022.

The 1099 is issued to her SSN and name. The TP is filing as single on his 2023 1040. So, how do I report this in PS?

Thanks for your help.

IRonMaNAnswer

Level 15

You don't need to complete a 1099 in the software. Just directly enter the royalties on schedule E. Or if you are really into completing 1099s, you can put his name on the 1099 worksheet. As a side note, tell your client to update the ownership information with the entity paying the royalties so you don't have to worry about this every year.

Slava Ukraini!