Estate Filing

[David581]

My wife’s mother passed away in November 2023 and her father passed away in December 2023. There wasn’t a will and the estate had to go through probate. My wife was appointed as the executor of the estate on 09/26/24 and on 10/10/24 an EIN was assigned for her father’s estate.  Her parent’s 2023 tax return was filed in April 2024 and a refund was received 06/20/24 which included interest of $30.  On 10/14/24 a life insurance check was received that included unexpected interest in the amount of $4k.  The checks were deposited into her father’s estate account which was recently setup by our attorney. No funds have been distributed from the estate account.

I’m in the process of filing the estate’s tax return using TurboTax Business:

• What would we use for the 2024 filing period for the estate, this is the first return for the estate?
• There are a total of 3 beneficiaries, do I need to list all 3 on form 1041?
• The 1099-Int received from the IRS has my wife’s father EIN listed on it instead of the estate’s EIN. Do I need to file a 1099-Int form with the IRS to correct this error? The check states pay to the order of my wife with her parent’s names listed as deceased.
• Should this be checked as final return and would we amend the return if we receive a bill from the attorney?

[M-MTax · Accepted solution]

You can choose the beginning date for the 1041 when the estate first received income in June of 2024. The ending date could then be May 31, 2025, giving the executor until September 15, 2025 to file the return (which could be marked as the final return if all of the income has been received and expenses paid).

You can treat the $30 as IRD (income in respect of a decedent) and report it on the estate's 1041 and, on the 1041, you would enter the number of K-1s attached. if none, there is no need to generate K-1s  (i.e., if the estate will be paying all tax due).

[David581]

Thanks!