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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10172
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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SIR/MADAM: My brother passed, I received $19,000.00 from

Customer Question

SIR/MADAM:
My brother passed, I received $19,000.00 from from CA pers in checks he had not cashed.
The only thing received from CA Pers was a warrant in the amount of $19,000.00
How do I treat this on Fed income tax return.
Submitted: 9 months ago.
Category: Tax
Expert:  Lane replied 9 months ago.

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

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First, I'm sorry for your loss

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If you would, clarify a few things for me:

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  1. Have the checks been cased at all?
  2. Were these retirement benefit checks?
  3. Was this a death benefit to you?
  4. Are you asking about his final 1040 or YOUR tax return?

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If you'll provide more of the detail here I can help

Customer: replied 9 months ago.
1-YES
#2-YES
#3-YES
#4-YES
Customer: replied 9 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Lane replied 9 months ago.

Sorry, I'm not being clear... they checks can't be retirement check that continued to come to him after passing and be a death benefit too

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Also, you can't be talking about both your return and his final return ... better said you can be but I need to know whether this is income for him or you to answer both questions

Expert:  Lane replied 9 months ago.

OK I see you've requested a call ... I make the additional services offer

Expert:  Lane replied 9 months ago.

OK while I'm waiting ... I'll start trying to address all of the possibilities here:

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If there's a warrant for the taxes on the 19000 ffrom Cal Pers, (as opposed to CA Franchise tax board) then it seems that maybe thesw were intended as retirement checks and they've asked for the money back once they got record of his passing?

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If this was a death benefit to you, then you would have received a 1099-R from Cal PERS for the taxes on that distribution... to you.

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Customer: replied 9 months ago.
SIR:
My brother had no will or trust that I was mentioned in. Who ever handled his estate said i was only survivor, he was retired and had not cashed retirement checks and as a survivor I was entitled to one time payout. I called CA Pers, They said they did not know how to treat this on my FED tax return, IRS not answering phone
Expert:  Lane replied 9 months ago.

Thanks that helps.

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Because this was money that had never been taxed, you'll have what's called IRD (Income in Respect of a Decedent).

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You'll report this as IF you had received that 1099-R and all was taxable (you may want to give it a few days .. Feb 2nd was the deadline for 1099's to go out ... If Cal PERS knows that you received this, then they should have sent a 1099

Customer: replied 9 months ago.
The warrant was issued by Ca employees retirement system. It states this is a one time payment.
Expert:  Lane replied 9 months ago.

Ok, yes, the warrant here simply is advice that a check or direct deposit was sent

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See this:

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This section displays details of the current status, action, and disposition of a warrant (benefit payment or check). In most cases the warrant status will be updated via a batch sent from SCO, but in some exception cases a warrant status update needs to be made to an individual warrant. You can view details of a specific benefit payment before an update is made.

Item

Description

Warrant Issue Date

The date the benefit payment was or will be issued, either by check or by direct deposit.

Warrant Status

The status of a benefit payment.

(Warrant Status) Date

The date the current warrant status was updated.

BRF/SCO Warrant Number

A number assigned by CalPERS/SCO and printed on the warrant. If the warrant is sent by direct deposit the number will start with a "P". Blank means a warrant was not issued (on HOLD) or the issue date is too far in the future, we have not received the information from SCO.

Warrant Action

The actions that can be performed on a benefit payment.

(Warrant Action) Date

The date the current warrant action was updated.

CalPERS Warrant ID Number

A unique number assigned by CalPERS for each benefit payment.

Warrant Disposition

The state of a benefit payment after an action has been performed.

(Warrant Disposition) Date

The date the current warrant disposition was updated.

Roll Type

The type of roll the benefit payment was produced from.

Remittance Advice (RA) Number

The number assigned to the remittance advice which is used to explain why an adjustment is/was made to a payment.

(RA) Date

The date the remittance advice number was established.

Payment Type

This column displays how often the benefit payment is scheduled to be issued.

Related Warrant Number

The number assigned to a re-issued check.

(Related Warrant Number) Date

The date the related warrant was issued.

Claim Schedule

The number assigned to the claim schedule associated to the benefit payment.

Related Warrant NumberLink

Select this link to view the details of the related warrant. The Warrant Details page displays.

Customer: replied 9 months ago.
SIR:
CA Pers said that the checks were retirement checks in his posession that he had not cashed on his death, and as only living survivor I was entitled to them. I would suspect that he had taxes held out. CA Pers is not clear from my telephone conversation with them.
Expert:  Lane replied 9 months ago.

That may be then WHY you received no 1099-R

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If there was tax withheld (that's rally the question you'll need to get answered) then this is NOT taxable to you at all

Expert:  Lane replied 9 months ago.

I hope this has helped.

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Please let me know if you have any questions at all.

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If this HAS helped, I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane

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Expert:  Lane replied 9 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane

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