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Regarding 1041. I filed an initial and final return for 2019, but received a 1099 for 2020 for $498 for dividends earned. Are taxes owed?

Forum|Forum|5 years ago
February 19, 2021
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Is all income on Form 1041 taxed or is a small amount non-taxable?

Best answer by Irene2805

I am now assuming, from your response, that this is an estate and you are the person who filed the 1041.

If the foregoing is the case, then the $498 is under the filing threshold for filing a return (1041) so you simply need to distribute the funds in accordance with the testamentary document(s).

The dividends received in 2020 would normally go on a 2020 1041 return (even though you marked the 2019 as final). But as tagteam pointed out, the income is below $600 and you are therefore not required to file a 1041 return. So just distribute the funds as determined by the will.

A

Anonymous_

Employee

You need to enter that $498 into your 2019 return and see if anything changes in that respect.

Since this was a final return, the $498 would most likely change the figure that was reported on the K-1(s).

B

bobwechslerAuthor

Are you saying to file an Amended 1041 for 2019, even though the dividends were received in 2020?

FYI, the Estate paid the taxes and no K-1's were issued.... that is why it was an Initial and Final Return

A

Anonymous_

Employee

I am now assuming, from your response, that this is an estate and you are the person who filed the 1041.

If the foregoing is the case, then the $498 is under the filing threshold for filing a return (1041) so you simply need to distribute the funds in accordance with the testamentary document(s).