Hi, I have never prepared a 1041 (decedent's estate) return before. My first is a simple one, thank god, but even so I'm confused about a couple things.
1) I believe the estate (or at least the estate bank account) is now closed, but it looks like a refund will be expected on the 1041. Who gets the refund? How do I handle this on the 1041?
2) The estate got a disbursement from an HSA account on a 1099-SA. Does this count as income to the estate?
3) The largest income item was a total distribution from a 401(k). Taxes were withheld. Because 100% of the estate's income is being distributed to heirs, this results in zero taxable income and a refund. Does that explanation sound like I understand what's going on? (I know I am giving you very little information, but does that sound like a typical scenario?)
Thanks to much. I feel like such a dummy for not being better informed about estate returns. So far, all my clients have been living!