Question

1099-NEC form for a surviving spouse benefit

Forum|Forum|4 years ago
March 6, 2022
1 reply
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My husband died last summer and he had been receiving a monthly retirement annuity (for which he received a W2 form each year; we've both been retired for nearly 20 years) from his employer that was subsequently transferred to me (known as a 100% Joint and Survivor benefit plan option) the month after his death. I received a 1099-NEC form for the total amount of ~$10,000 non-employee compensation (Box 1) with about ~$1000 federal income tax withheld (Box 4). When I enter this 1099-NEC info into Turbotax it asks if this is for a self-employment activity or a personal business and asks me to set up a Schedule C. I don't believe that my status is as a self-employed person or a business, I'm simply a surviving spouse receiving a monthly benefit after my husband's death. Can I report this as "Other Income" - I expect to receive the monthly annuity as long as I live.

Not A Product Question

J

JillS56

Your status may not be self-employed but Form 1099-NEC is for non-employee compensation so it is treated as a Schedule C self-employed. You should select to put the information on a Schedule C. This will carry over to the 1040 and will be reported as a ($10,000) and if you entered the information on the 1099-NEC correctly the ($1,000) will report correctly.

I would assume next year you will receive a W-2 as you have in the past.

H

hiply_2022Author

Not sure if I'll receive a W2 instead of a 1099NEC from them next year. My husband received the W2 for this pension annuity when he was still alive, but since I was never an employee of the company they treat surviving spouses as 1099-NEC contractors, despite me never doing any "contract" work with them. I'm just worried that this new self-employment opens up a new can of worms.