haru
Level 3

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I read this very helpful reply, as I had a similar question regarding 1099 income that will be reported by the employer next year, the year after my partner's death on July 30, 2020.

 

For 2020, I will file his final 1040. Since there was no other income to him or to the estate by 12/31/2020,  I do not file a 1041 for last year. Got it.

 

But I did receive a check in January of this year for his final salary/PTO.

Since it didn't arrive in 2020, I won't get that 1099 until next year.

Do I report (and pay income taxes) and that amount on a 2021 Form 1041?

 

(And might I be wise to file a 1041 for 2020 anyway, even with $0 income, so there's a record of the estate's tax ID already on record?)

 

ALSO... am I correct that any 401-K/pension I received as his beneficiary does not require reporting on a 1041, even though his accounts did increase in value before I moved them into an inherited IRA?

 

Super helpful thread. Appreciate the EXPERT feedback here, as well as just reading other threads.