When the estate was created, a new taxpayer was created. Think of the estate tax return 1041 as you would a 1040. The same taxable income rules apply. If this were the decedent's personal tax return would you include any of the listed items on their 1040? If the answers is no, you would not include them on the estate return. So regarding the Prescription rebates, did they claim the medical deduction in a previous year or were they under the filing limit? If they did not deduct the Prescription Drugs then you do not need to include the rebates. Same with the Hospital policy claims. The rest are definitely no.
