DMarkM1
Expert Alumni

Get your taxes done using TurboTax

You do not need to pay the 4th quarter estimated taxes.  You will file a final tax return for tax year 2020.  If the estimated tax payments do not cover the taxes due for the year (through Oct 2020) then he will owe a tax on his tax return.

 

Of note, your father will most likely be eligible for a Recovery Rebate Credit on his 2020 tax return in the amount of $600 to reconcile the second round of stimulus payments.  Individuals who died after 1 January 2020 are eligible for this credit.  

 

TurboTax will make this calculation for you based on answers and entries when completing the return.

 

Here is a link with more information on the Recovery Rebate Credit. 

 

For the Fidelity account, there will be no notification for not taking a distribution.  If your father had taken a distribution both he and the IRS would receive a Form 1099-R.  That Form 1099-R would be used to enter the distribution on his final 2020 tax return.  

 

 

 

  

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