Strange 1041?

[AZ-Tax]

TP dies in May of 2008 but relatives could not get a couple Banks to change SS# on accts until early 2009 therefore 1099-int (09) were issued in the TP name & SS#. Due to this I filed a form 1040 for the deceased TP in 2008 (full yr) now I want to file a 1041 for 2009 but I dont see anyplace on the 1041 for the deceased SS#, only the Estate or Trust Employer ID #. Do I enter the totals from the 09 1099-int's on line 1 under income on 1041 and attach a preparers note explaining this is the same interest generated under the TP SS# 000-00-0000?

[Burke]

This happens all the time. You should have pro-rated the interest for the deceased TP up to the date of death, and all interest after that goes on the Estate 1041. It does not matter what the 1099's show as SSN, except for the fact that you had to initially report it all on the 2008 TP return so that it would match the info reported to the IRS, then you would have subtracted out as nominee interest the estate's part That should have gone on Form 1041 for 2008. For 2009, it all goes on the 1041, as you cannot file a return for a deceased person after the year of death. (The amount that goes on the Estate 1041 will vary depending on whether you are using a calendar year or fiscal year.)

[cj2minty]

along a slightly different line

I have had two clients with deceased spouses who received a W2 for 2009 (died in 2008) the amount is under 200 with withholdings. I am listing on the husbands return with a note explaining does anyone have any other ideas

[Burke]

If TP died in 2008, you cannot file a tax return for that person in 2009. See instructions for W-2 and W-3, page 5. "If [the employer] made a payment after the year of death, do not report it on Form W-2, and do not withhold social security and Medicare taxes. [ If payment is made]...after the year of death, you ...must report it in Box 3 of Form 1099MISC, for the payment to the estate or beneficiary. Use the name and TIN of the payment recipient on Form 1099MISC." Withholding taxes should be shown on that form. Surviving spouse needs to contact the employer for the Form 1099MISC.