Discussion:Form 1041/Form 1040 State tax refund recorded
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Discussion Forum Index --> Tax Questions --> Form 1041/Form 1040 State tax refund recorded
| 25 March 2008 | |
| Client died 3/10/07. State tax refund for 2006 arrived 5/10/07. Report as income on 1040 or 1041? She was cash basis tax payer. | |
| 25 March 2008 | |
| Can you give me the reference? The folks I have spoken to say 1040 since the money was paid by her during her lifetime and was a refund, not income. I can't find the reference to support either. | |
| 25 March 2008 | |
| I hate to appear dense, but can someone help me with this? I feel like it should go on the 1040, but can't find any backup in the IRS pubs. | |
| 25 March 2008 | |
| I hate to appear dense, but can someone help me with this? I feel like it should go on the 1040, but can't find any backup in the IRS pubs. | |
| 25 March 2008 | |
| Have you checked out pub 559? Under "Income To Include": "The decedent's income includible on the final return is generally determined as if the person were still alive except that the taxable period is usually shorter because it ends on the date of death." Seems to me that supports Bryan's answer above. That pub also has lots of info on how to handle IRD on the 1041.
Sure, pubs aren't "authority" per se, but you may be out of luck altogether on that request (as discussed with great humor here: http://www.taxalmanac.org/index.php/Discussion:Authority). Also, you'll find that you get more responses once you've filled out your profile, as it helps people understand what your background as a tax preparer is. | |
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