topic Re: Estae Executor Fees in Get your taxes done using TurboTax

Estae Executor Fees

soju1 — Sun, 02 Feb 2025 14:34:44 GMT

How does the IRS know if I received a one time Estate Executor fee?

Re: Estae Executor Fees

M-MTax — Sun, 02 Feb 2025 15:02:28 GMT

How does the IRS know if I received a one time Estate Executor fee?

They don't unless you are issued a tax reporting statement (e.g, a 1099) or you report it voluntarily in the absence of a tax reporting statement.

Re: Estae Executor Fees

MindyB — Sun, 02 Feb 2025 15:51:28 GMT

The IRS may or may not be informed by the estate directly, but you should still report your income accurately.

Here is a tool from the IRS to help determine ‌taxability: Are the fees I receive as an executor or administrator of an estate taxable? As well, reimbursements you received for your expenses of being an executor aren't income.

Re: Estae Executor Fees

M-MTax — Sun, 02 Feb 2025 16:29:50 GMT

The IRS may or may not be informed by the estate directly

The way the IRS is informed is via a 1099 unless the payment is below the threshold. It is highly unlikely that the IRS would be able to match the fiduciary listed on the 1041 to a fiduciary fee reported on the same form. Regardless, the fee should be reported no matter the amount.