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January 24, 2024
Question

A unique Form 1041 problem

  • January 24, 2024
  • 1 reply
  • 0 views

I am the Executor of my sisters Estate. Due to a banking issue in 2022, her last SS payment was rejected by her bank and it took me 11 months to obtain that check. As a result, that check was issued  in 2023 and I received a 1099 issued in her name under her SSN.  I have already finalized her last 1040 return in 2022 and I know that cant be amended.  Looking at form 1041 the only place to report the payment ($630.00) is in Other Income using her Employee Identification Number.  Thats the only item in the Estates Income and the 1041 Exemptions is $600.00, leaving $30.00 of taxable income.  Is this the correct way to report this even tho the 1099 has her SSN?  Thanks for any help you can provide

1 reply

Employee
January 24, 2024

Yes, it is income in respect of a decedent (IRD) and is reported by the person or entity receiving the income.