Deceased wife (2019) received a 1099-Misc for 2020 for a retired debt. What do I do with it?

Income in respect of a decedent refers to income that the decedent had a right to receive at the time of death, but that is not reported on his or her final return. It does not include earnings on savings or investments that accrue after death.

Say a taxpayer who has a substantial amount in money-market mutual funds dies on June 30th. Only interest earned up to that date would be reported on the final tax return. Earnings after that date are taxable to the beneficiary of the account, or to the estate.    I am sorry for your loss. 

The IRS expects a final accounting, and it's up to the executor or survivors to file the paperwork. Here's what you need to know about the deceased's final tax return, reporting income and deductions, inheritance and more.