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@myTax wrote:

Thank you again,

 

So to make sure I understand this, 

 

For POD bank account naming her as beneficiary,

 

1)  interest was paid before death,  ( $10.74 )  report it on mom's 1040 individual tax return

2)  interest was paid after death,  ( $10.74 )  report it on her 1040 individual tax return

3)  in either case,  1041 fiduciary return is NOT required ( no estate exists )

4)  This is true for interest greater than $600 or if  interest in the amount of thousands of dollars are paid

 

Is this correct ?

 

 

 

 


#1 & 2 if the total years interest was $10.74 then only the part if that that was prior to death would go on mom's tax return and the part paid after death on the beneficiaries return, but for that amount of interest, just report it to whose SSN is on the 1099-INT that reports the interest.  If the 1099-INT is in Mon's name and SSN then report the entire amount on her final tax return.   It is simply not worth prorating (and explaining with nominee elections)  for such a small amount.   

 

#3 If the bank account passed directly to the beneficiary then the estate is not involved at all.

 

#4 Any amount.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**