topic A "twist" on receiving a 1099 INT for a deceased person in Get your taxes done using TurboTax

A "twist" on receiving a 1099 INT for a deceased person

marktm200 — Wed, 11 Feb 2026 04:13:32 GMT

The situation in a nut-shell:

- During the probate of my Father-in-law's Estate it was discovered that an ibond of significant value was possibly lost, or could have been cashed out - we could not find records.

- We applied to Treasury Direct to determine the status of the ibond

- Months later, we were told it had not been cashed out and they sent the full amount with interest. However this was in the year after the decedent's "final" taxes were submitted (for 2022)

- We received a 1099 INT from the Treasury Dept. for tax year 2023 under the decedent's SS number, but also with his Daughters name listed as the executrix of the decedent's Estate.

- This would be the only income that could be attributed to the Estate as no other "assets" had any income. The "Estate" has two equal beneficiaries.

Question is how to handle this 1099 INT in the 2023 tax year in the most economical, and simplest manner?

Thanks

Mark

Re: A "twist" on receiving a 1099 INT for a deceased person

DaveF1006 — Wed, 07 Feb 2024 19:31:33 GMT

Since you filed your final return in 2022, I would suggest you amend your 2022 Estate Tax Return to include the 1099 INT interest form, even though it was received in 2023. As you prepare your amendment, you will be asked why you are amending and you can state that this was income received after the final estate was prepared. This should be sufficient for reporting this income.

Re: A "twist" on receiving a 1099 INT for a deceased person

marktm200 — Wed, 07 Feb 2024 19:50:27 GMT

David;

I have not yet filed an Estate (1041) return as there was no income to report. The only tax report made has been my Father-in-laws final return and this 1099 INT came well after his was filed. So i wonder if this 1099 INT that has is SS number would require either his amended return or a new 1041 Estate filing. I have home and business, so it appears I'd have to purchase the TT business to do the filing and use the Estates EIN even though his SS number is what appears on the 1099 INT?

Thanks for your rapid response

Mark

Re: A "twist" on receiving a 1099 INT for a deceased person

Anonymous_ — Mon, 23 Dec 2024 15:52:27 GMT

Re: A "twist" on receiving a 1099 INT for a deceased person

marktm200 — Wed, 07 Feb 2024 23:30:10 GMT

This IRS explanation is the closest I can find in the supplied link:

"U.S. savings bonds acquired from decedent.

If series EE or series I U.S. savings bonds, owned by a cash method taxpayer who reported the interest each year, or by an accrual method taxpayer, are transferred because of death, the increase in value of the bonds (interest earned) in the year of death up to the date of death must be reported on the decedent's final return. The transferee (estate or beneficiary) reports on its return only the interest earned after the date of death."

As the decedent's final return was submitted before the ibonds were "found", this seems to insinuate that his final return would need to be amended and the two beneficiaries would need to pay for the tax consequence. Note that the total interest amount when cashed out reported on the 1099 INT has no indication of interest before and after death.

Is this and acceptable method by the IRS?

Re: A "twist" on receiving a 1099 INT for a deceased person

marktm200 — Thu, 08 Feb 2024 21:32:05 GMT

An update - the 1099 INT has the last four digits of the Estate's EIN - so it appears I need to file a 1041.

It's very simple as there is only this 1099 INT and the cost of the probate attorney and a few "qualified" deductions that I've identified. As I have TT home and business and would need to update to TT business for an Estate filing I'm wondering if I should simply mail in the 1041 form or is there an advantage to upgrade. I bought the Desktop version at Sam's Club, so if needed how can I upgrade?

Re: A "twist" on receiving a 1099 INT for a deceased person

RobertB4444 — Thu, 08 Feb 2024 21:52:17 GMT

Open your return and there should be an upgrade button in the bottom right hand corner. If not then click on 'Help' and the upgrade option is there as well.

Efiling processes the return faster but otherwise there is no real advantage to efiling over mailing the return. You will need to complete the 1041 before you or your sister are able to complete your personal returns.

@marktm200

Re: A "twist" on receiving a 1099 INT for a deceased person

marktm200 — Sun, 11 Feb 2024 14:11:41 GMT

Another "twist" in this journey;

Home and Business and Business are on different platforms, so I was told I could not "upgrade". The "help" gal tried unsuccessfully (as I had tried) to find an "upgrade" path from H&B and eventually found that they are not compatible.

I purchased the Business to complete the 1041 Estate filing and found it very intuitive and helpful as it both files the 1041 AND provides the K-1 forms and the letter to beneficiaries to make it all a neat package.

From an Estate filing perspective, well worth the extra $$'s, but now having two separate tax filing platforms can be a bit confusing - short cut icon is the same! This being the only year with these issues - it's OK!

One additional question. When asked about distributions to the beneficiaries, I chose to include any disbursements that was related directly to the iBond amounts (used the total iBond, less expenses and divided equally to the two beneficiaries). There was no "help" pop ups, and the 1041 tax ($0) and the K-1 tax consequence did not seem to matter anyway as long the beneficiary disbursements were larger than the interest income.

Appears I'm done!

Re: A "twist" on receiving a 1099 INT for a deceased person

Anonymous_ — Mon, 23 Dec 2024 15:52:45 GMT

Re: A "twist" on receiving a 1099 INT for a deceased person

ron6612 — Wed, 19 Feb 2025 14:17:53 GMT

I received a check that included 1099 interest income in 2025 for my mom who passed away in 2020 and in which a final 1040 and 1041 trust income return was filed. The payer, NJ Unclaimed Property says that the 2025 1040 will go to the social security umber of my mom and that can’t be changed. The IRS said that the 1099 should go to the estate ein number and another final 1041 should be filed for 2025. But, NJ won’t change it for 2025 tax reporting. The interest income is $5,000 and legal expenses are $3,500 (which would be deductible on 1041). What do you think?

Re: A "twist" on receiving a 1099 INT for a deceased person

DavidD66 — Wed, 19 Feb 2025 14:31:46 GMT

You should file an amended 2020 Form 1041 and include the interest and the legal fees. You do not file a personal tax return (Form 1040) to report income received after death. Another option would be to report the interest income on your personal tax return (if there are other heirs, you would split it). You wouldn't be able to deduct the legal fees. The former is the correct way (amended 1041), the later a CYA way to ensure the income is reported.

Re: A "twist" on receiving a 1099 INT for a deceased person

ron6612 — Wed, 19 Feb 2025 14:37:22 GMT

Thank you. Yes, the irs said to just file another 1041 showing only the new income and expense. However, the 1099 would be to the ss number of my mother not the estate ein number?.

Re: A "twist" on receiving a 1099 INT for a deceased person

DavidD66 — Wed, 19 Feb 2025 14:44:24 GMT

You don't need to worry about the EIN on the 1099. It is for a deceased person and the amount is not significant. It will go unnoticed by the IRS. And if it were, you would be able to show that it was reported on the amended Form 1041. And if your mother were alive, the amount, $5,000 would be below the filing threshold, so they would expect a return to be filed just for that. Just report the interest on the 1041 as if you didn't receive a 1099.

Re: A "twist" on receiving a 1099 INT for a deceased person

ron6612 — Wed, 19 Feb 2025 15:15:41 GMT

Thank you, so I would just do a simple 1041 next year and only show those two items? IRS said it would not be a problem to mark the simple filing box and mark it once again as Final?

Re: A "twist" on receiving a 1099 INT for a deceased person

PatriciaV — Wed, 19 Feb 2025 20:54:35 GMT

Yes, you can file Form 1041 next year to report the additional income and mark it as final. If you receive a letter from the IRS, you can respond with the reason for the additional return.

Re: A "twist" on receiving a 1099 INT for a deceased person

ron6612 — Wed, 15 Oct 2025 18:40:00 GMT

Different situation. Will be receiving a 1099 for interest income this year from unclaimed security that NJ housed for 15 years. The probate process was done this year and state will be sending out $5,000 for the interest income earned over 15 years. The family member passed away 5 years ago and the state will not process the 1099 to the estate EIN number. The state says the claim was made in the name of the deceased and not the estate. The final personal and estate tax returns were filed for 2020. Should we amend the final estate returns with a note or just forget about filing another personal return for someone who passed away 5 years ago?

Re: A "twist" on receiving a 1099 INT for a deceased person

Mike9241 — Wed, 15 Oct 2025 19:25:50 GMT

my take is that the person that inherited the property is responsible for reporting the interest that accumulated after death

Re: A "twist" on receiving a 1099 INT for a deceased person

ron6612 — Wed, 15 Oct 2025 19:56:15 GMT

Understand can file amended 2020 1041 even if first return marked as final in 2020. Should I include a note that the 1099 for interest income was reported by NJ incorrectly? Anything else required?

Re: A "twist" on receiving a 1099 INT for a deceased person

ron6612 — Sun, 28 Dec 2025 03:17:05 GMT

In doing some research have come across the statute of limitations which is 3 years. Can I just file a final and amended 1041 for 2025 even though first final 1041 was done in 2020. The only two new items were the 5000 of interest and 3500 for legal fees. The 1099 will be using my mom’s social number and a final 1099 was also done for her in 2020. Thanks!

Re: A "twist" on receiving a 1099 INT for a deceased person

Hi Palms — Sun, 28 Dec 2025 07:17:02 GMT

@ron6612 wrote:
In doing some research have come across the statute of limitations which is 3 years. Can I just file a final and amended 1041 for 2025 even though first final 1041 was done in 2020. The only two new items were the 5000 of interest and 3500 for legal fees. The 1099 will be using my mom’s social number and a final 1099 was also done for her in 2020. Thanks!

My way to handle this would be to file a 2025 1041 showing the $5k in interest and $3.5k in legal fees. That leaves the estate with $1,500 of taxable income and a tax bill of $150. I would paper file, attach the 1099 with an explanation that it belongs to the estate, include a check for $150 and be done with it.

The SOL is 3 years but you're getting a 1099 with a 2025 date for $5k. You could absolutely ignore it and file nothing since it's in her name and SSN but it's a lot cleaner to file a 1041 and pay the tax due which is a pretty small amount anyway. Your choice, really.