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Old 01-24-2012, 07:49 PM
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Join Date: Jan 2012
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Death Benefit Recieved

I recieved a check from my father's union after he passed last January. The check was for $4000 minus the $800 i paid in taxes, therefore I only recieved $3200. Do I have to file this income with my taxes since I already paid tax on it? If so, how will my refund be affected? Thanks in advance.



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Old 01-25-2012, 04:02 AM
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“I recieved a check from my father's union after he passed last January. The check was for $4000 minus the $800 i paid in taxes, therefore I only recieved $3200. Do I have to file this income with my taxes since I already paid tax on it? “---->Death benefits you receive may be subject to income taxation. It largely depends on the source of your inheritance, though. When receiving money as an inheritance, it's important that you understand how these benefits are taxed. Failing to pay the right amount of tax would result in penalties, cutting into your inheritance even more.So, did you receive 1099-R with code 4, then you need to report it on 1040. Death benefits are taxable for income tax but they are notsubject to Soc Sec tax, FICA Tax.
“If so, how will my refund be affected?”----->As they already withheld tax of $800, you do not have to pay estimated tax on the benefits and report it on 1040 .As you can see, when your tax liability on 1040 line 61 is less than the taxes paid and reported on 1040 line 72, then you ‘d be subject to tax refund. a tax refund should not be considered free money. If you do receive a large tax refund, you are essentially giving the government a tax-free loan. When filing death benefits on your tax return. You need to fill out your Form 1040 or Form 1040A, depending on how you normally file your taxes. You'll need a copy of the Form 1099-R that reports your inheritance.When recording death benefits, you will fill out your tax return as normal. For death benefits, you'll include this information on line 16a and 16b of a 1040.
Please visit the IRS website here: https://sa2.www4.irs.gov/irfof/lang/...fgetstatus.jsp



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Old 02-08-2013, 10:20 PM
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Join Date: Feb 2013
Location: Alabama
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1099-R death benefit

I found a form, 4972 that seems to be appropriate for claiming the death benefit amount for a 1099-R, annuity payment. It has restrictions to the age of the benefactor, but otherwise, seems to be the right form for claiming the taxable amount. I'm wondering if this is the way to go. It saves a lot in the tax amount compared to using line 16 on the 1040 form.



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