Death benefits are generally taxable. The taxable amount is round in Box 2 of the 1099-R. To enter the lump-sum survivor benefits in your tax return: Open TurboTax and select the Income section, Choose 1099-R under Retirement Income Add a 1099-R and select that I'll type it in myself Enter the information from the 1099-R, choosing Code 4-Death for Box 7 Check that this was not from an IRA Answer if the Pension was from employment as a Public Safety Officer? Continue through the program and answer the questions as you go Answer yes to the RMD question