I have fees coming this year as an estate executor. Do I need to send a withholding tax payment to IRS when fee received or pay tax at filing?

[Anonymous_]

See https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

Whether you need to make estimated tax payments is dependent on all of your income and any withholding from a W-2 job (or otherwise).

Note that you may also have to make estimated tax payments to your state.

[TomD8]

Suggest you try this IRS online questionnaire first:

https://www.irs.gov/help/ita/are-the-fees-i-receive-as-an-executor-or-administrator-of-an-estate-tax...

[Anonymous_]

The questionnaire has little to do with withholding unless the fee was waived by the executor (in which case the fee is not reportable as it was never received).

Assuming the fee was not waived, it is taxable income and the only issue is whether it is self-employment income or ordinary income not subject to self-employment tax. 

[TomD8]

Rev. Rule 58-5: Not SE income unless the executor is in the trade or business of being an executor (i.e., a professional executor).

https://www.taxnotes.com/research/federal/irs-guidance/revenue-rulings/rev-rul-58-5/dhzh

[Anonymous_]

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@TomD8 wrote:

Rev. Rule 58-5: Not SE income unless the executor is in the trade or business of being an executor (i.e., a professional executor).

https://www.taxnotes.com/research/federal/irs-guidance/revenue-rulings/rev-rul-58-5/dhzh

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Which almost certainly is inapplicable to the vast majority of executors who use TurboTax and post on this board.

[TomD8]

True.  But it is taxable income, and if not SE it should be reported as "Other income" in TurboTax.  Form 1040 Schedule 1 line 8.

[Anonymous_]

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@TomD8 wrote:

....But it is taxable income, and if not SE it should be reported as "Other income" in TurboTax.  Form 1040 Schedule 1 line 8.

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Agreed. If not waived, the fee(s) must be reported one way or the other.

[Bruce52]

If fees are less than $600 per year then no form is required.  If $600 or over for a year then the estate issues Form 1099-MISC.  No withholding is required.  Schedule C where you can take deductions (car, expenses ect) is the best way to report the income.

[Anonymous_]

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@Bruce52 wrote:

Schedule C where you can take deductions (car, expenses ect) is the best way to report the income.

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As @TomD8 indicated, the income would be reported on Form 1040 Schedule 1 line 8.

Schedule C would be used by professional fiduciaries and expenses incurred by representatives of the estate can be reimbursed by the estate.