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hack1t
Level 1

Income reporting

My wife's father-in-law passed and we received a couple of disbursement on his farm from the government.  They won't send a 1099 below $600 so I'm not sure where and how to report the income.  Any help appreciated.

2 Replies
GiseleD
Expert Alumni

Income reporting

Is there an estate involved? If so, you may want to consult with the estate's personal representative or a tax attorney who specializes in estates for accurate guidance on this. The estate's income is reported on Form 1041 (US Income Tax Return for Trusts and Estates). TurboTax Online does not support Form 1041; however, you can purchase TurboTax Business to prepare it.

 

Here's some more information on estates:

 

An estate is a taxable entity separate from the decedent and comes into being with the death of the individual. It exists until the final distribution of its assets to the heirs and other beneficiaries. The income earned by the assets during this period must be reported by the estate. The tax generally is figured in the same manner and on the same basis as for individuals, with certain differences in the computation of deductions and credits. The estate’s income, like an individual’s income, must be reported annually on either a calendar or fiscal year basis. The personal representative chooses the estate’s accounting period upon filing the first Form 1041.

 

Every domestic estate with gross income of $600 or more during a tax year must file a Form 1041. If one or more of the beneficiaries of the domestic estate are nonresident aliens, the personal representative must file Form 1041, even if the gross income of the estate is less than $600.

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hack1t
Level 1

Income reporting

Thank you for the reply.  The farm is still in probate so now I'm wondering if it's the estate that still needs to be taxed or those of us who it's been distributed to.

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