@Goodfoodchef wrote:
Thank you! Just a bit more to make sure I understand...
The interest was credited to the account in my mother's name for all of 2023 (the year of her death, she passed in August 2023). I filed her 2023 return (last return) and included the entire amount of interest. The bank issued a combined 1099 statement, and though I did close our joint account, in my haste I neglected to close the account that was in her name alone. That account continued to earn interest for all of 2024 (and up until this week when I received the 1099 and realized something was amiss). It is about $4000 of interest. I have no idea how we let this slip through the cracks.
It sounds like the easy route is just to report the interest on my 2024 return. Is that correct? Using TT, where would I include this amount?
If you reported all the 2023 interest on her tax return, that was technically incorrect, but a relatively harmless error.
If you are her heir, or the person legally entitled to this income, then you would report the 2024 interest on your 2024 tax return as if it was paid directly to you. There is a specific section for interest income. If the 1099-INT is in her name, you would report the interest but check the box for "I did not get a 1099-INT." If the 1099-INT is in your name, report it like any other bank interest.
