Yes, employers should file a 1099 form for a deceased individual who died during the year. Use a Form 1099-MISC to report any payment owed to their estate or beneficiary. You should report the payment regardless of whether you made it in the year of their death or the following year.
The following steps should help you navigate this unfortunate but necessary process.
- Step 1: Report payments for a deceased person in box 3 of Form 1099-MISC.
- Step 2: Enter the relevant name and Taxpayer Identification Number on the form. A recipient in one circumstance might be an individual beneficiary.
- Step 3: Enter that person’s name and their Social Security Number on the form. You should enter the name and Employer Identification Number of the deceased person’s estate if that is the recipient.
- Step 4: Remember that general backup withholding rules are applicable for estate payments.
People Also Ask
- Is it necessary to update vendor records if your payee is deceased? – Yes, you want to make sure that all of your records that you are required to hold onto are up to date so that your future reporting includes the correct legal name and a taxpayer identification number for the estate or successor.
- Does an employer need to request a new W-9 form when a contractor dies? – Yes, getting an updated Form W-9 will ensure that you have the correct taxpayer details.
- Should an employer hold onto documentation for a payee’s death ahead of the next tax season? – Yes, it will make the next tax season easier if you have a copy of the payee’s death certificate or representative authorization to improve your overall compliance.
We handle multiple types of 1099 form generation programmatically with our base W-2/1099 Forms Filer program. Download our free 1099-etc Demo software today and enter your real data that will remain in our system after you purchase the program.
This article was updated on Dec. 11, 2025 to keep its information as relevant as possible. We update this article every six months, before and after tax season, to keep up to date with any changes.