Tags
1099-DIV, 1099-INT, Beneficiaries, estate, Final Return, Financial Institutions, Income Earned after Death, IRS, Nominee Distribution, Schedule B
To report 1099 income properly on the final return, the executor must determine how the financial institution reported the income on the 1099. The executor must know if the income on the 1099 is for the entire year or only before the date of death. Typically, financial institutions will send a 1099 showing the income earned for an entire year even if the executor informed the financial institution of the death. This doesn’t make the 1099 invalid, it just makes more work for the executor.
