My wife died in 98. I receive a PERS death benefit check every month. Is this taxable income?

Question

I was told by a preparer at Jackson Hewit that it was not but last year an accountant that I used said it was. Now, I dont know who is right.

PERS is Public Employees Retirement System - It is money that is paid both by the employer (in this case) and the employee for the individuals retirement. When my wife died I was offered a lump sum with no monthly allotment, a lump sum with a small monthly amount or simply an amount each month that was figured by her years of service with the organization. I did call Pers but was on hold too long. I guess I can go to the IRS offices in Sacramneto (I dont like the idea of being on hold with them either).. Surely I am not the only widower receiving a check from the largest (private) retirement system in the world

Public Employee Retirement System -

Answer 1

I used to work for Jackson Hewit and I would be leary of anything they say. Seek a tax accountant for anything except basic returns.

Answer 2

Jackson Hewit has been all over the news for the past week because of some serious issues at a number of their offices. I think you might have received bad information. What you are receiving is a taxable pension. The accountant is right.

Answer 3

This answer is actually a series of guesses.
Guess 1: PERS means Public Employees Retirement System.
Guess 2: The IRS treats this the same a Social Security.
I think any single payment resulting from your wife's death would be treated like life insurance and be non-taxable. Any regular payment made over your lifetime, may or may not be taxable depending on other income.

Answer 4

THEY the government , ( federal and states) should had took their taxes before you start receive the checks , it like social security , , while your wife was working , no taxes was taking out , I also have PERS, but I am a long way before I can use mines

Answer 5

A little more info please about this check that you get - what is it?