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QUESTION DETAIL
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In 2010, my son qualified for his disability but he passed away before getting the money and I was sent $12,000 for the survivor benefit. I was told by the CPA doing my taxes that this money was non-taxable. However, the IRS sent me a letter indicating that owe taxes on this money. Is the IRS correct?
ANSWER
Expert Mark Anderson's Answer:
It depends upon your income. If you income is bellow $25,000 for filing single or $32,000 for married filing jointly, then you do not pay tax. Above those amounts it may be taxable. I would check with your CPA. I hope this answers your question. Thank you.
