Question

Reporting Estate's Small Amount of Bank Interest Income

Forum|Forum|3 years ago
April 8, 2023
1 reply
0 views

Hello -

For an estate, if the deceased's bank accounts only make $200 for the tax year 2022, what forms might I need to file to report this? There is no other estate income.

We just sold the estate's house in 2023 so we plan to file again once 2023 wraps up, but do we need to do anything this year? Thank you!

Not A Product Question

M

mglauner

If the deceased person has an Estate set up, normally you would report the interest income on the Estate tax return. The Estate would then issue a K-1 form to the beneficiary that actually received the income, to report on their individual tax return.

Here's more info on Estate Tax Returns.

If there is no estate, the beneficiary that actually received the income can report it as 'Income in Respect of a Decedent' on their return.

Here's more info on Reporting Interest Income for Deceased Person.

Sorry for your loss.

@anniebop7

A

anniebop7Author

Thank you very much - what if the accounts are still active within the Estate - so essentially the interest just went to the general fund that we use for Estate expenses? Do we still need to generate the K-1?

Could it really be as simple as filling out a few lines on the 1041? (I just don't expect taxes to be easy, so I'm suspicious) 🙂

PatriciaV

Employee

Yes, include the interest income on the estate 1041 tax return. TurboTax Business will prepare all necessary forms for filing, including Schedule K-1 for all beneficiaries, if any.

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