Question

Deceased father got some 1099-Div

Forum|Forum|4 years ago
March 10, 2022
1 reply
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My father passed away in Dec 2020 I filed his final tax for 2020. Question is in regards to dividend income in 2021, before several accounts were moved about.

It took until April 2021 to set up the new account at the brokerage to move the Trust assets from my father's Trust account. The new account is still his Trust but I am trustee and it has a new Tax ID number. His Trust account had some paid dividends prior to the transfer. The brokerage prepared 2 1099-Div, one for each account, but one for Jan -April timeframe is under my father's SSN

Additionally, The same thing happened with several drip accounts that would have needed to go to an estate account and TIN since they were not held in the trust and had to be probated, but actually all the Dividends were paid to his SSN.

I understand I need to file 3 taxes, 1041 for trust with K1 to me, 1041 for estate with K1 to me and of course my taxes. I'm just not sure how to account for the 1099's in his name and SSN, it is about $17k total in taxable dividends.

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GeorgeM777

It appears you may have to amend your father's final return. According to the IRS, if an amended Form 1041 must be filed, use a copy of the form for the appropriate year and check the “Amended return” box. Complete the entire return, correct the appropriate lines with the new information, and refigure the tax liability. On an attached sheet, explain the reason for the changes and identify the lines and amounts changed.

If the amended return results in a change to income, or a change in distribution of any income or other information provided to a beneficiary, an amended Schedule K-1 (Form 1041) must be filed with Form 1041 and a copy given to each beneficiary. Check the “Amended K-1” box at the top of Schedule K-1 (Form 1041).

@John1204

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J

John1204Author

Hi George, thanks for the response. I'm a little confused. Maybe I was overexplaining the issue. I did file his 1040 for 2020 and marked it as final. I'm referring here to income received in 2021 under his SSN and not the TIN of the Trust or Estate that probably should have received it. Do I just contact the various companies and see if they can resend a corrected 1099? I spoke to Schwab and the guy I spoke to there just said to talk to my tax person.

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ThomasM125

The companies will probably not agree to reissue the 1099 form, but you can ask.

If there is an estate set up for the deceased, then you would report the income on the estate tax return. If there is no estate and the money ended up in the hands of a beneficiary, then you would report it on that person's tax return.

The IRS won't look for a tax return for the deceased, since you filed the final return and they should have noted that. So, the W-2 filed with the deceased tax ID should not prompt the IRS to request a tax return from the deceased.

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