Broker credit check from 2005 and 2007

[Randy16]

My father died Jan 2017.  I was POA and executor.  The estate was settled years ago.  I recently got a check from his broker for $161.  It is said to correct their mistakes in 2005 and 2007 and includes interest.  He had closed that account a year or so before dying.  They included a form that makes it possible to have them reissue the check to a provided "qualified plan name and address".  I would be happy to have them send it all to the IRS.  What is my best course of action?

Randy

[Anonymous_]

If you were the sole beneficiary (heir) you can report the entire amount on your return as income in respect of a decedent (IRD).

The safest way, and since the amount is relatively small, would be to report it as "Other income". 

[Critter]

You can report it as other income on Sch 1  line 21. Here's how to enter it in TurboTax.

• Click the Federal Taxes tab ( Personal in the Home & Business version)
• Click Wages & Income. (Personal income in the H & B version)
• On the screen "Your 2018 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.

The income will be reported on Sch 1 line 21 with the description that you entered.

[Randy16]

The trick would be cashing the check.  It is made out to my father and there is no account left in his name.   I suppose that I could tell the broker to reissue checks to the beneficaries listed on that account since he is deceased but the account was closed while he was alive.  I doubt that will work.  I am happy without the $161, I just do not want any hassles with the IRS when the broker sends a report (1099-R) to them in Jan 2020.  Any chance of hassles?

[Randy16]

Thanks for the very detailed reply.  The problem is actually getting my hands on the income.  See my reply post to tagteam.

[Critter]

If you never negotiate the check you and the estate have nothing to report ... see if they will re cut the check in the name of a living person instead. 

[Randy16]

So you think there would be no hassle resulting from the broker sending the 1099 to the irs if I never deposit the check?   I will see if the broker can send checks to the beneficiaries.  Thanks.