Death benefit tax treatment

[NSNM]

What is the correct tax treatment of death benefit ($255) received from socoal security administration by the spouse of deceased ?

Is it exempted or taxable ?

Whose income is it - Spouse or the deceased ?

Where does it reported on Form 1040 if MFJ, or Fiduciary Form 1041?

Appreciate any response. Thank you.

[S T]

Non Taxable

Really hard to find in the publications or information - the answer is that the $ 255 paid to the surviving spouse is not taxable.

I had wanted to give you something to refer to - but difficult to find - the best I could find is from Pub 554 under lump sum payments , on about page 15

Lump-Sum Election
You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2010 in your 2010 income, even if the payment includes benefits for an earlier
year.
This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the Social Security Administration (SSA) and U.S. Railroad Retirement Board (RRB) pay many of their beneficiaries. No part of the lump-sum death
benefit is subject to tax .

Sandy

[taxea]

What is the correct tax treatment of death benefit ($255) received from socoal security administration by the spouse of deceased ?

Is it exempted or taxable ?

Whose income is it - Spouse or the deceased ?

Where does it reported on Form 1040 if MFJ, or Fiduciary Form 1041?

Appreciate any response. Thank you.

No 1099? It should show a 4 in box 7 and nothing in box 2

[newbie]

No 1099? It should show a 4 in box 7 and nothing in box 2

It wouldn't be reported on a 1099R - if reported at all it would be on the SSA-1099.

[Gary2]

No 1099? It should show a 4 in box 7 and nothing in box 2

The Social Security Administration doesn't issue 1099-Rs. At least, I've never seen one.

But this triggered a red flag for me, because I've seen too many cases where the preparer interpreted nothing in box 2a of a 1099-R as zero taxable income. Even when they don't check the "taxable amount not determined" box, I never trust a blank box 2a as implying zero. I'm hard pressed to think of any case where that box would show a 0 with box 7 showing code 4, since they're not even supposed to issue the 1099-R if they know that it's not taxable.

[Burke]

It wouldn't be reported on a 1099R - if reported at all it would be on the SSA-1099.

The SSA does not report it on any type of form. It is not taxable and non-reportable.

[NSNM]

No reporting form

Surviving spouse confirms that she received $255 death benefit from SSA. But no reporting document was received by her for that benefit.

Both the deceased and the surviving spouse were recipients of social security benefits in 2010. They both received Form SSA-1099 and the benefit amount reported on it was social security benefits only. It does not include death benefit. It made sense when Sandy (ST) provided reference of Pub 554. Thank you Sandy.

After reviewing various publications, it appears to me that one time lumpsum death benefit from SSA is not referenced much about its nontaxability.

Thank you so much Taxea, Newbie, Burke, Gary2 and Sandy for your input on the subject and I appreciate you all for your time and efforts

[ChEAr$]

If anyone knows something to the conrary, please correct me. But I also think I remember
that the $255 is payable ONLY to the surviving spouse to help with funeral expenses.
IOW, no surviving spouse, no $255.

[Gary2]

It can be paid to either the surviving spouse or, in some cases, eligible minor children. See http://ssa.gov/survivorplan/ifyou7.htm .