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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14829
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am both a beneficiary and the executor of my mothers

Customer Question

I am both a beneficiary and the executor of my mothers estate.
I wan to pay myself for doing the work involved.
How can I not pay taxes on this amount?
Submitted: 10 months ago.
Category: Tax
Expert:  Robin D. replied 10 months ago.

Hello

You would not have to pay Self Employment tax on the amount of pay you receive (because you are not in the regular business of estate administration) but you can not avoid including the pay on line 21 of your 1040 form.

You can see this for this yourself in IRS Publication 559

Fees Received by Personal Representatives

All personal representatives must include fees paid to them from an estate in their gross income. If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Form 1040, line 21. If you are in the trade or business of being an executor, report fees received from the estate as self-employment income on Schedule C, Profit or Loss From Business; or Schedule C-EZ, Net Profit From Business, of your Form 1040.

If the estate operates a trade or business and you, as executor, actively participate in the trade or business while fulfilling your duties, any fees you receive related to the operation of the trade or business must be reported as self-employment income on Schedule C (or Schedule C-EZ) of your Form 1040.

Expert:  Robin D. replied 10 months ago.

Checking to see if you responded

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