Do I have to pay taxes on executor fees received from a friends estate?

[jkinnnj]

If so, how much should I expect to pay?

[Carl]

Yes. Monies paid to you as the executor of the estate are taxable income to you. Most likely, you'll report it on SCH C as self-employment income. In addition to regular taxes as determined by whatever tax bracket you fall in, you'll also pay an additional 15.3% self-employment tax if the amount you are paid is more than $400.

[jkinnnj]

Thanks.

[Critter · Accepted solution]

If you are not in the business of being an executor and you only did it once then line 21 is the correct place ( of course for 2018 the forms have changed but the concept is the same) 

You can report it as other income on Form 1040 line 21. Here's how to enter it in TurboTax.

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         On the screen "Your 2017 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.

[Carl]

Thanks Critter. I knew it had to be reported, but wasn't sure if it was SCH C or not.

[fanfare]

your executor fee is Other Income. report on form 1040 Line 21.

[Anonymous]

In general, non-professional executors and trustees are not subject to self employment taxes. Recurring fees might be considered to be earned income and thus subject to social security taxes. 

Rev. Rul 72-86 · Rev. Rul. 58-5

[Douglas K]

Where in tubrotax do I enter the fees I was paid to manage an estate?

[tagteam]

Unless you are in the business of being an executor (which is highly unlikely), the income is reported as Other income on Line 8 of Schedule 1 which, in turn, will wind up on Line 7a of your Form 1040.

In TurboTax, click the Start button to the right of Miscellaneous Income, 1099-A, 1099-C and then click the Start button to the right of Other reportable income.

[20Bend06]

I've done that and it becomes "taxable income" which I thought it was not. ???   Do I need to report it with a I-1 form???

[ToddL99]

Executor's fees are taxable income.

Unless you are in the business of being an executor, however, they are not treated as self-employment income and are not subject to self-employment tax.