Question regarding how to handle 1099/1040/1041's after a parent's death

Forum|Forum|1 year ago
January 8, 2025
1 reply
0 views

My mother passed away in late-November 2024. From what I've read (and please correct me if I'm wrong), this is how I'm supposed to handle her 2024 tax situation. Note that I had POA prior to her passing, I'm the executor of her estate, and I'm also the sole beneficiary.

1) File her personal 2024 1040 with the 1099's sent to her (and her SSN). Note the income from 1/1/2024 to the date of her death and adjust her 2024 income accordingly. Issue "new" 1099's to the newly created estate for the remainder of the income for 2024. The "new" 1099's will list her as payer and the estate as recipient.

2) I do have a EIN for her estate, and I will pay any taxes due on her 2024 1040.

3) File an estate 2024 1041 with the "new" 1099's and then write a K-1 with myself as the beneficiary. The estate will then pay zero taxes for 2024 and simply move the remaining tax burden to myself and my personal 2024 1040.

My question... for 2025 I expect to still get some 1099's issued to her SSN. Would I repeat the same procedure above for 2025? Or does the fact that her personal 2024 1040 is her "final" 1040 complicate matters? I wasn't able to close/transfer all her accounts by the end of 2024, so there's 1 or 2 accounts that will send her 1099's with her SSN. Or is there an easier way to handle all of this?

Thanks in advance!

Best answer by M-MTax

The remaining 1099s would ordinarily be reported on the 1041, estate income tax return.

Otherwise, it appears as if you have a good handle on the general procedure, However, since your mother passed in November of 2024, you could file one 1041 which would be both an initial 1041 and a final 1041 (aka a fiscal year return).

For example, your fiscal year 1041 could begin on the date your mother passed in November and end on October 31st of 2025. In that event your filing deadline for the 1041 would be February 16th of 2026.

I am sorry for your loss.