I am completing my first 1041 for my parent that passed away over a year ago. Last year a CPA was available to submit the 1041. For 2020 I only have some savings bond interest when I cashed in her old bonds. The interest was > $ 7k. Do I need to pay income tax for that some how ?
Using Turbo Tax Business application did not direct me to needing to do so.
Thank you-
Whoever got the interest reports it because it's IRD......if the estate received it the estate reports it on a 1041. if you or any other beneficiaries got the interest you report it on your personal tax returns.
Thanks for the reply. The 'estate' technically received the interest so now, do I have to pay an IRS Income tax on the behalf of the Estate ? I expected the 1041 to denote a Federal tax payment due but it did not trigger that so now is an 1040 required of the Estate ?
If the estate received the interest you file a 1041 and then make a distribution to the beneficiaries of the estate......the estate would pay no income tax on the interest because the interest is passed through to the beneficiaries who are then responsible for paying any taxes on their shares.