topic Death of a Tax Payer in Get your taxes done using TurboTax

Death of a Tax Payer

rsherry8 — Thu, 29 Jun 2023 03:19:15 GMT

If a tax payer dies on June 1, 2023 am I correct in saying that his/her 2023 tax return will only show income

the tax payer received between Jan 1, 2023 and June 1, 2023?

For income received after June 1, 2023 am I correct that will be reported on estate tax return?

Re: Death of a Tax Payer

Mike9241 — Thu, 29 Jun 2023 06:21:06 GMT

the tax payer received between Jan 1, 2023 and June 1, 2023?

yes

For income received after June 1, 2023 am I correct that will be reported on estate tax return?

it depends. if there was a joint owner (like a spouse) with right of survivorship, it would be that person that would report the post death income. it is necessary to look to who or what becomes the owner/beneficiary of the property producing the income immediately after the death. for an item like wages earned before death but paid after, that would be the estate. for retirement plans and annuities, any named beneficiary(ies) if there are any and they are living (had one case where the spouse was named but she had died years before and her husband never updated the beneficiary form).

Re: Death of a Tax Payer

Anonymous_ — Thu, 29 Jun 2023 14:19:48 GMT

I agree with @Mike9241.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285932

Also note that the estate, itself, is only required to file a return (Form 1041) if it has income of $600 or more.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285942