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jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
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I had my fathers estate return (1041) done with a CPA and

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I had my father's estate return (1041) done with a CPA and filed as final return. Since then I have received a check made to the estate of my father from a credit union in the amount of 4300 (approx.) with about 8.00 in interest earned.

I have a couple of questions:

1. Do I do another 1041 for next tax year since this was received by the estate in a different tax year? If so can an estate be reopened after closed?

2. Does the 4300 of principal from the account count towards the $600 minimum to have to file another return?

3. Lastly if I do not have to file a return, how would I show the $8 interest distributed to me and on my 1040?

Greetings,

 

It is not unusual for an entity to list a return as final and then file another tax return; so if another return is needed it would simply be filed (and again marked as final).

 

If the 4300 is the amount that was deposited, you said principal, and is just a return from a taxable account (not an IRA or Roth IRA) then none of that return is income that counts toward the $600 filing requirement.

 

If you do not file another return for the estate and you are the sole beneficiary then you will include the $8 interest on your individual return along with your other interest earned during the year when you file.

 

Please ask if you want more discussion or need clarification.

Thank you.

 

 

 

 

Customer: replied 3 years ago.

yes the 4300 was in basically a savings type account that earned interest and it earned approx. 8.00 for this year before the check was written to the estate

Hello again,

 

It seems as though there is not a filing requirement for the estate since there is not a need to file if gross income is less than $600.

 

If you got the $8 of interest than that amount is to be reported on your return.

 

Please ask again if you want more discussion or need clarification.

Thank you.

jgordosea and 2 other Tax Specialists are ready to help you
Customer: replied 3 years ago.


thank you. in this scenario just to make sure I am correct, a 1041 is not required due to the income for the estate to be less than 600. Therefore no K-1 is completed. I just show on my personal return 1040 8 of interest income.


 


thank you for your help and have a great day.

You are quite welcome.

 

Yes, there is not a 1041 required due to the income for the estate to be less than 600. Therefore no K-1 is completed.

Yes show on the personal return 1040 8 of interest income that was received.

 

If you need help in the future you can include my name in the question.

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