Social Security tax?

[TAXMAN]

TP received ss statement with oao behind his name. Dad died. Box 2 for SS# is blank. Whose return does this go on. TP or dad?

[Lee B]

What's the $ amount in Box 3

[TAXMAN]

Box 3 and 5 are same $1800. box 4 =0

[kathyc2]

I also had one this year paid to adult daughter.  Never seen this before.  Is box 8 the Dad's SSN followed by U1?  I can't find what that code means, but I'm wondering if it means underpaid?

[TAXMAN]

Yes box 8 is dad's SS# followed by UI. still the problem. Where do I report it? Box 2 not having any SS# in it I wonder if IRS will be able to trace it?

[Lee B]

It sounds like a post death lump sum settlement to the dad.

It just didn't get resolved and paid until after the dad died.

[kathyc2]

23 minutes ago, TAXMAN said:

Yes box 8 is dad's SS# followed by UI. still the problem. Where do I report it? Box 2 not having any SS# in it I wonder if IRS will be able to trace it?

Mine had the daughter (my client) SSN in box 2 so I put it on her return. I've found lists of the codes that can be in box 8, but none list U1.

[kathyc2]

So... after being on hold forever with SSA the agent sent me in the right direction.  In certain circumstances, adult children can make a claim for last month SS benefit of parent via Form 1724  Claim For Amounts Due In The Case Of Deceased Beneficiary.  This article describes the circumstance: https://maximizemysocialsecurity.com/when-will-social-security-pay-deceased-persons-last-payment

Not sure how your client received the payment without supplying his SSN.   Since the money was after death, it would be income in respect of decedent same as if it were interest earned on a bank account after death. 

Since post 1997 new claims are not paid on the first of the month, I think this will become more common.