Reporting Deceased Income After Final Tax Return

[nosillo2]

The final tax return was submitted in April 2025 for 2024 taxes.  The decease received interest income (IRS) and State Refund (itemized for 2024) for 2025.  How are those items reflected on Form 1041?  

Thanks,

[M-MTax]

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@nosillo2 wrote:

The final tax return was submitted in April 2025 for 2024 taxes.  The decease received interest income (IRS) and State Refund (itemized for 2024) for 2025.  How are those items reflected on Form 1041?  

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As interest income on the 1041 (from the IRS) and the state refund is not taxable unless there was a tax benefit to the decedent (i.e., state taxes were deducted in 2024 and the deceased received a benefit from that deduction).

[nosillo2]

A 1099-g was received from state for 2025 since taxes were itemized.  So should income be reported? The 1099-int was reported under other income on form 1041and wrote ird under description and deceased info.   Otherwise how would IRS no how to identify?

Thanks

[M-MTax]

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@nosillo2 wrote:

 The 1099-int was reported under other income on form 1041and wrote ird under description and deceased info.   

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That's fine, not that it makes a whole lot of difference, since it's taxed at the same rate or distributed out to the beneficiaries to be taxed at their marginal tax rate.

[M-MTax]

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@nosillo2 wrote:

A 1099-g was received from state for 2025 since taxes were itemized.  

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Then the refund is taxable to the extent a tax benefit was received.