Estate - Form 1041

[Forensicacctnt]

Decedent's date of death is January 23, 2020. A final 1040 was filed for 2020. The estate has not been closed since funds in an investment account and a bank account both in the decedent's name have not been given to the two beneficiaries the decedent designated in her Will. Is it correct that IRS Form 1041 must be completed for the tax year 2021 for the interest and dividend income earned by the investment account? The estate value is less than $11,700,000. Thank you!

[New York Enrolled Agent]

Decedent's date of death is January 23, 2020. A final 1040 was filed for 2020. The estate has not been closed since funds in an investment account and a bank account both in the decedent's name have not been given to the two beneficiaries the decedent designated in her Will. Is it correct that IRS Form 1041 must be completed for the tax year 2021 for the interest and dividend income earned by the investment account?

An estate is required to file a Form 1041 if the gross income for the taxable year exceeds $600. You didn’t say how much gross income there is for tax year 2021.

[Forensicacctnt]

The gross investment income exceeded $600. So I will file a form 1040. Thanks,

[DoubleO]

It sounds as if a 1041 should be filed for 2020 and 2021. Any income after January 23, 2020 (DOD) will be nomineed to the estate if still being reported in decedent's name and SSN.

That's assuming the income in 2020 after date of death was at least the income in 2021 (over $600.)