According to the IRS Publication 559, interest accrued to the deceased's account needs to be reported by the beneficiary. But the bank issued the 1099-INT in the name/SSN of the deceased.
How to enter this properly in TurboTax for the deceased?
Note: Since the account had a beneficiary (and it was not the executor) and thus not subject to probate, but the executor has to handle the last tax return for the deceased, does the executor have to send a 1099-MISC to the beneficiary (on behalf of the deceased) ?
Note2: Yes, there will be a separate "estate income tax return / 1041" for other income received that has not been distributed. But the key question here is how is the interest reported to the deceased properly handled in the various tax forms (ie: for the deceased and for the beneficiary). Decased's tax return will be filed via TurboTax by the executor; interest claimed by the beneficiary will be via a separate CPA/Tax Preparer. I'm the executor.
Thanks for any help! (ie: an exact procedure is needed).
Thanks in advance!
