Technical topics regarding tax preparation.
Amend final 1040 for decedent
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10-Nov-2019 2:49pm

I prepared a 2018 1040 for taxpayer who died on 10/22/2018. I included all of the information reported on the 2108 1099DIV and 1099 INT on the 2018 return. Now the taxpayer's lawyer wants me to do a fiscal year 1041 for the taxpayer's estate (FYI, taxpayer is my mother). I've prepared other 1041 returns for trusts and they were done on a calendar year basis.

Since I included income (dividends and interest) that were received after the date of death, must I amend the 2018 tax return. Or, is it OK to prepare the 1041 on a calendar year basis as I previously intended to do?

Can I make a note on the proper schedule that some information was previously reported on the 2018 1040.

Thank you for your clarification.

10-Nov-2019 7:14pm

Kathy, the income earned post-death should be reported on the estate 1041, not the decedent's 1040. Fiscal year 1041's are probably more common than calendar year 1041's for estates and perhaps the attorney has a reason...timing, complexity, beneficiaries, etc...the legal and admin fees may wipe out the 2018 income resulting in less overall tax.

I would amend and go fiscal, the caveat being I don't have all the details.

11-Nov-2019 12:22pm

Thank you Howards. Do I need to request corrected 1099s for 2018 or can I just report the correct amounts?

11-Nov-2019 12:41pm

Just report the correct amounts. Payor issued the 1099s based on the info they had. i.e they were not timely informed of the death.

11-Nov-2019 2:28pm

Agree with sjrcpa but I would report the total amounts listed on the 1099's and reduce (correct) what needs to be adjusted as "nominee" interest/dividends etc.
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