Spousal Income in tax year after death

[bumpo]

Client's spouse died in Nov 2016. A joint return was filed for 2016 and the death of spouse was noted on the return. In 2107, the client received 2 1099-R's and 1 1099-INT in the name and SSN of the deceased spouse. How do I handle reporting this income on the clients 2017 return?

Thank you in advance

David Ruscus

[TAXNJ]

Think you mean 2017 not 2107

Client's spouse died in Nov 2016. A joint return was filed for 2016 and the death of spouse was noted on the return. In 2107, the client received 2 1099-R's and 1 1099-INT in the name and SSN of the deceased spouse. How do I handle reporting this income on the clients 2017 return?

Thank you in advance

David Ruscus

See TTB starting on page 21-10 for clarification.

....INCOME
Only income received by the decedent before death is reported on the final income tax return (Form 1040).Exceptions:...

[Burke]

Client's spouse died in Nov 2016. A joint return was filed for 2016 and the death of spouse was noted on the return. In 2107, the client received 2 1099-R's and 1 1099-INT in the name and SSN of the deceased spouse. How do I handle reporting this income on the clients 2017 return? Thank you in advance. David Ruscus

I think you need to explore where this income went. The 1099-R's indicate it was IRA or pension/annuity monies and it may have been paid to the beneficiary, especially if owner died late in the year and it was not paid until early 2017. If that is what happened, then the 1099 should have had the bene's name and SSN on it and it is taxable to that person. Same with the interest. Was this a bank account or CD, etc.? If so, who got the funds? Probably the spouse in both cases, and the spouse would report it on their return. Happens all the time if timely notification of SSN change is not received in the year of death.