All personal representatives must include fees paid to them from an estate in their gross income. If you aren't in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Schedule 1 (Form 1040), line 8.
You would enter the payment you received as the personal representative of an estate in TurboTax in the Miscellaneous Income section under Other Reportable Income. In the fields provided, enter a brief description, such as "personal representative fees" and the amount.
According to the IRS, a personal representative has three tax-related responsibilities:
- Get an employer identification number for the estate. When you die, your Social Security number effectively dies with you. Your belongings pass to your estate, which needs an ID number of its own.
- File all the necessary tax returns for the decedent and the estate.
- Pay the taxes owed by the decedent and the estate. Representatives usually pay these taxes using the assets in the estate, not from their own money.
See this TurboTax tips article for more information.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.