Income from joint account shared with deceased person after final tax return was filed

[jgs]

I shared an investment account with a relative who died in 2023.  I was also the executor of the estate and filed a final tax return for the year 2023 for the relative.  However their was an investment account we held as joint tenants in common along with another relative.  The investment firm didn't close that account and divide the proceeds until mid-2024 and has now created a 1099 for the dividends and interest that came into the account before the proceeds were dispersed.  The 1099 is in the name and social security number of the decedent.

Since a final tax return has already been submitted for the decedent, how do I report the 1099-int and 1099-div on that account?

[SabrinaD2]

Since the decedent's final tax return has been filed,  and it appears the interest and dividends were earned after death report the 1099-INT and 1099-DIV on Form 1041 for estates and trusts if the estate received the income. If the income was directly distributed to ‌beneficiaries, they report it on their personal returns. See the Instructions for Form 1041 and TurboTax's Death in the Family article for more details. The estate will likely have to give a K-1 to each beneficiary. Instructions for Schedule K-1 beneficiary filing can be found here

Click here for additional IRS information for Executors.

[jgs]

Thank you for the reply.  But I still have a question about a form 1041 needed or not.

The income on the 1099 was early 2024, so was all after death which was in 2023.  The interest and dividends went first into the joint account, then when all assets in that account were divided between the two remaining people on the account  they each received a part of the dividends and interest. 

1. So does the  executor have to file a form 1041 and sends a K-1 to each of those who received the proceeds?

2.  Or can they each just report their portion of the interest and dividends as other interest or dividends?

thank you!

[ThomasM125]

If the income of the estate is more than $600, then a trust return is required. In that instance, a k-1 form should be provided to each beneficiary on which their share of the interest income is reported. 

[jgs]

Thank you!