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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7073
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I have a client whose estate earned and received over $600

Customer Question

I have a client whose estate earned and received over $600 in "Exempt Interest Dividends" during 2015. This was the only income of the estate. Do I have to file federal and NYS estate tax returns for tax year 2015?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

Who must file:

Decedent's Estate
The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has:
1. Gross income for the tax year of $600 or more, or
2. A beneficiary who is a nonresident alien.

Notice it says "Gross Income", not Gross Taxable Income or Gross Income subject to Tax.

Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. While exempt-interest dividends are not subject to federal income tax, they may still be subject to state income tax or the Alternative Minimum Tax (AMT).

Expert:  Stephen G. replied 1 year ago.

Just checking in...............

I see that you have been able to review my response; do you have any further follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.