topic Is 1041 necessary for estate with only a bank account (interest less than $600)? in Get your taxes done using TurboTax

Is 1041 necessary for estate with only a bank account (interest less than $600)?

CapedBear — Mon, 09 Mar 2026 05:12:38 GMT

Hello,

Thank you all in advance for your help! For tax year 2021 regarding a decedent's estate, the IRS states:

The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has:

Gross income for the tax year of $600 or more, or
A beneficiary who is a nonresident alien.
If you held a qualified investment in a qualified opportunity fund (QOF) at any time during the year, you must file your return with Form 8997 attached. See the Form 8997 instructions.

The estate has only 1 bank account, and although the account's value is more than $600, the interest it gained since my relative's death was far, far less than $600. The gross income in this case is just the interest gained, not the value of the account, right? Would the fiduciary still be required to file a 1041 or is it okay in this case to not file a 1041 since the interest gained is less than $600? The IRS would not be expecting a 1041, right?

I tried calling the IRS only for them to say they do not answer questions on 1041. Thank you again for your help in these stressful times.

Re: Is 1041 necessary for estate with only a bank account (interest less than $600)?

Anonymous_ — Wed, 23 Feb 2022 02:29:11 GMT

@CapedBear wrote:

The gross income in this case is just the interest gained, not the value of the account, right?

That is correct. In this case, it would be the interest earned on the account and not the value of the account.

Re: Is 1041 necessary for estate with only a bank account (interest less than $600)?

CapedBear — Wed, 23 Feb 2022 03:17:22 GMT

Thank you, @Anonymous_ ! Does this mean that there is no need to file a 1041? The IRS would not be expecting a 1041 from the fiduciary?

Re: Is 1041 necessary for estate with only a bank account (interest less than $600)?

Anonymous_ — Wed, 23 Feb 2022 03:44:42 GMT

The IRS might be expecting a return if the executor (or other responsible party) applied for an EIN for the estate.

However, that could easily be countered (if necessary) with a response that the estate did not receive $600 or more in gross income.

Re: Is 1041 necessary for estate with only a bank account (interest less than $600)?

CapedBear — Wed, 23 Feb 2022 04:22:33 GMT

The executor did apply for an EIN... I think it was required by the bank. What would the executor respond to? Would the IRS reach out if a 1041 isn't received? There appeared to be no way to contact the IRS about 1041. The wording in https://www.irs.gov/instructions/i1041 makes it seem that the executor would not have to file a 1041 since the gross income is less than $600, but I really hope I'm not reading this incorrectly.

It appears that the safest way is to file anyway using TurboTax Business, right? Which just adds salt to the wound for a grieving family paying $150+ just to tell the IRS that the estate owes no income tax.

Re: Is 1041 necessary for estate with only a bank account (interest less than $600)?

Anonymous_ — Wed, 23 Feb 2022 14:42:40 GMT

@CapedBear wrote:

Would the IRS reach out if a 1041 isn't received?

That is a possibility (most likely remote), but could be quickly resolved with a response to the effect that there was no return requirement due to the income level being below the filing threshold.

Re: Is 1041 necessary for estate with only a bank account (interest less than $600)?

CapedBear — Thu, 24 Feb 2022 15:45:55 GMT

I see. Thank you so much, @Anonymous_ !