Mom died in 2015, everything passed to me (only child) as sole beneficiary and also personal representative. Never had to file for an EIN, never had to file an estate return because there was never anything except for the first initial stuff- mostly life insurance that didn’t generate any real income (which I mostly used to pay off her debts). I filed her final return and thought everything was done. In early 2020, I end up receiving some stuff made out to her estate - specifically an old life insurance policy, possibly from before I was born so it was made out to her estate and not me, and an old retirement account (found on FindMassMoney.com). Life insurance was for $9200 and Retirement for $1100. I ended up having to file for an EIN so that I could open an estate bank account and deposit them (the year after her death I just used her regular bank account to finish paying bills until all her accounts were closed). Once they cleared, I wrote myself checks as I'm the beneficiary. Now, in 2021 I received a 1099-int for the interest gained on the old life insurance policy ($100) and a 1099-R for the retirement (which I had taxes taken out of, so that's there as well). I have entered both of those into turbo tax, but I'm wondering if I need to include the life insurance payout as well since it was made to her estate? Later on in turbotax it asks for beneficiary information and the numbers don't add up if I don't include the life insurance payment (when I say the beneficiary received $10K but only claimed $1300 in "income" because that's all the 1099-int and 1099-R are for). Help! Thank you!
No, you absolutely do not have to include the initial pay out on your return. Just the "future" earnings after receipt and investment and those are all stipulated by date of death and subsequent date of investment.
Thank you! So I just need to include the 1099 int and 1099 R? I just didn’t want it to seem suspicious when later on I say the beneficiary got more than that. The thought of an audit stresses me out so I want to make sure I do everything correct the first time. Thank you for your help!