Received 1099-NEC as a Beneficiary

Forum|Forum|1 year ago
March 26, 2025
2 replies
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As the beneficiary of renewal insurance commissions, I recieved a 1099-NEC. The insurance company would not change the 1099-NEC to a 1099-MISC even though the agent that made the original sale is deceased. I am retired and do not have a business. How do I enter this income on Turbo Tax Premier 2024?

Thank you for your assistance.

Best answer by dmertz

I assume that the form is in your name, not in the name of the decedent. You can enter it as Miscellaneous Income -> Other reportable income. This will place it on Schedule 1 line 8z where it belongs as if it had been properly reported on Form 1099-MISC, but allowing you to provide your own description of the income instead of forcing a description that says that it came from a Form 1099-MISC.

There is still a chance that the IRS will question this income since it was reported on Form 1099-NEC instead of Form 1099-MISC on which it should have been reported.

ThomasM125

You should enter the Form 1099-NEC in the Wages and Income section, then Other Common Income, then Income from Form 1099-NEC. When asked, indicate the money was not related to your job, that you didn't receive it in the previous or following year and you did not have a profit motive for it and it will be entered as other income as opposed to self-employment income.

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LGDESIGNAuthor

ThomasM125,

Thank you for your response. After I enter the 1099-NEC information, the next set of questions asks "Does any of these uncommon situations apply?" One of 5 the statements is "This is not money earned as an employee or self-employed individual, it's from a sporadic activity or hobby (this is not common)". Although only the first half of this statement applies to me - should I select this statement or "none of these situations apply to me?" Either way I end up having to include Schedule C and pay self-employment tax. I do not understand how to get this income identified as other income as you suggest below.

Help with this would be much appreciated.

With Kind Regards.

dmertzAnswer

Employee

There is still a chance that the IRS will question this income since it was reported on Form 1099-NEC instead of Form 1099-MISC on which it should have been reported.

LGDESIGNAuthor

DMERTZ,

I appreciate that your answer gives me the option of entering the income in another way because the form is in my name. If I was more of a risk taker I would try this. Thank you for helping me make a decision on what to do.

With Kind Regards