Is 1041 required if estate was limited to primary home only

[TEThoughts]

If a decedent has no estate except a primary home is a 1041 required? The home was valued at $93,000 on the date of passing, then stepped up to $230,000 when inherited. Is there any benefit to filing a 1041 if it is not required? 

[DianeW777]

No, the form is not required. Form 1041 must be filed when there is income of $600 or more. If the home had been sold then you would have filed to transfer the sale to the beneficiary or beneficiaries. If there is not interest, dividends, or other capital sales then there's likely nothing to report for 2024. You can click the link above for more details.  If the home is sold in 2025, it can automatically be claimed on the return of the beneficiaries.

• Death in the Family Information

It's important to file the final return of the decedent if there is any taxable income that meets the filing requirement for that person.

2024 Filing Requirements Chart for Most Taxpayers

IF your filing status is. ………THEN file a return if your gross income was at least.

• Single under 65 $14,600, 65 or older $16,550
• Head of Household under 65 $21,900, 65 or older $23,850
• Married Filing Jointly under 65 (both spouses) $29,200, 65 or older (one spouse) $30,750 65 or older (both spouses) $32,300
• Married Filing Separately any age  $5
• Qualifying Surviving Spouse under 65 $27,700, 65 or older $29,200

If you were born before January 2, 1960, you're considered to be 65 or older at the end of 2024.

• IRS Publication 501

[TEThoughts]

Thank you! As it was described to me that table is for earned income. If there is Social Security Disability at $20,000 per year which is lower than the amount that becomes taxable, and no other income, with no bank accounts, I believe that would show as no income.  

[IsabellaG]

Yes, you understand this correctly. If the only income the decedent had was SS Disability, there would be no need to file a tax return.