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RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 40669
Experience:  Texas lawyer for 30 years in Estate law
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I am completing form 1041 deceased relative. There was W-2

Customer Question

I am completing form 1041 for a deceased relative. There was W-2 income of $5 and life insurance proceeds paid to the estate for $10,000. These are all the assets of the estate. Is the life insurance proceeds reportable on form 1041 as other income or should I report it on another form, if at all?
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. Ray here to help you today.

You would not need to do a return for $5.00 income here, the life insurance is not taxable to the estate or heirs.I do not think that a return here will be necessary at all.

Minimum income for filing here was $11,85o for 2015 if they were 65 and older, $10,300 under 65.The life insurance is not taxable so the $5.00 is under the limits here , no return should be necessary.

I appreciate the chance to help you today.Thanks again.

Expert:  RayAnswers replied 1 year ago.

Reference

http://www.efile.com/tax/do-i-need-to-file-a-tax-return/

Again the life insurance is not taxable.No return due here at all.

Customer: replied 1 year ago.
The life insurance had no named beneficiaries and was paid made payable to the estate. So, because it was less than the filing threshold, then no return is required...correct?
Expert:  RayAnswers replied 1 year ago.

Thats correct.Life insurance is not taxable here whether estate or individuals got it.No return needed.

Thanks for letting me clarify.