Income in year following death

[Bill Schaid]

My father passed away in Nov., 2018.  He received death benefits in 2019 from Social Security, the VA and from a Savings Bond.  TurboTax is 'demanding' a 2019 date of death, highlighting the 11/01/18 date of death as an entry error in Smart Check (Federal Review).  I am my father's Personal Representative and need to claim the income, though there is no tax due.  What do I do?

[Critter · Accepted solution]

A decedent cannot have income after death and they cannot file a personal tax return past the year of death.  Their estate receives the income or the beneficiary does ... so the income is reported on the estate's return form 1041  or on the beneficiary's personal tax return. 

[AnnF]

I have a further question on this topic.  My mother originally opened an account with my father as joint and 6 children as beneficiaries.  She died in 2018 and her final return was filed for tax year 2018.  In 2019, my father never changed the account to his name alone.  He passed away in 2019.  I received a 1099 with my mother's SS# for the interest earned in 2019.  Can I simply include this on my father's final return even though the SS# does not match with his?  Or, do I should I divide the interest among the 6 beneficiaries?

[Critter]

You should have taken care of this when he died ... the bank should have been notified so separate 1099 forms could be issued for the interest earned after death.  If the amount is less than $600 then you can ignore it ... an estate return for mom  is not required.   Or it can be entered on Dad's final return since he was a co owner. 

[AnnF]

Thank you for your help.