Discussion:1040 or 1041?
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Discussion Forum Index --> Basic Tax Questions --> 1040 or 1041?
Discussion Forum Index --> Tax Questions --> 1040 or 1041?
| 7 March 2008 | |
| Deceased client with total assets of $150,000 died in Aug. 2007. Her only 2007 income was from social security, some bank interest of $4,000 and dividends of $6,000. All her income was paid to her prior to death under her social security number. No additional was income received after death other than $9.00 of bank interest. A small estate was opened to probate the will by her attorney, however, less than $10,000 fell into the estate as bulk of assets were joint with others or were directly distributed to named beneficiaries. Beneficiaries received their own 1099's for all after death income. Normally, I would just file a 1040 return as all income for the year was received prior to death. I now find the attorney applied for an EIN number with the IRS and their letter indicates form 1041 should be filed by 04/15/2008. Can I still use her SS# and file form 1040 or must I file form 1041? | |
TheTinCook (talk|edits) said: | 7 March 2008 |
| Individuals
Must file even when dead May need estate too
If the estate had income More then six hundred | |
| 8 March 2008 | |
| Just so I'm not confused, do you mean Individual would file a 1040 return for 2007 income (all income was before death) with return signed by Personal Rep? And, are you saying that if the Estate had more than $600 "income" the 1041 must be used for the actual estate income? In this case, does "income" mean the $10,000 that was in a bank account that passed into the estate because no beneficiary or joint holder was named......or......is "income" as you state....any additional income/earnings over $600, made AFTER death, that would pass into the estate, requiring a 1041 tax return?
Other than the original deposit of the $10,000 bank account into the estate, this deceased had no additional income/earnings into the estate after death, other than $9.00 earned on bank interest. So, do I just file the 1040 and use the deceased SS# for her personal income earned prior to death and not file a 1041 return? | |
| 8 March 2008 | |
| The final return of the decedent (1040) includes all of her income up to the date of her death.
The return of the estate (1041) would include only the income from the estate property (or any income in respect of the decedent earned before but received after the decedent's death). It doesn't include the $10K bank account. So, since it's only $9, no 1041 is required. | |
| 8 March 2008 | |
| Michmack, you need a tax professional to help you. You do not know the basics of what is income and what is not. Please get professional help and don't try to do this yourself. | |
