Taxable interest from deceased final return

Forum|Forum|1 year ago
February 13, 2025
2 replies
24 views

I submitted my parent's final return to the IRS with the expectation of a refund. After a few years back-and-forth with the IRS, I finally claimed my parent's refund for that final return via the 1310 which redirected the payment to me. The return was from tax year 2020, but the refund wasn't received until 2024, and it included approximately $20 in taxable interest.

Do I need to file yet another "final" return for my parents for the total of the ~$20 in taxable interest (since it was interest paid against their final return refund), or do I claim that myself because it was paid to me via my inclusion of the 1310 form?

I would assume that I claim the taxable interest on my own taxes because that interest was paid to me, but I've learned not to assume anything when it comes to the logic behind IRS operations.

Thanks!

M-MTax

Level 15

@Dino8peanut wrote:
I would assume that I claim the taxable interest on my own taxes because that interest was paid to me,

Yes, report the interest on your own return.

MaryK4

Level 15

You will not be able to file under your parent's name because the final return is the last one the IRS will accept. You can report the income on your tax return if you had the right to receive the refund. You can enter as Interest income or enter as Miscellaneous Income as "Income Respect to a Decedent".

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"