Estate return and withholding

[jasdlm]

Decedent died in December 2018.  SS was deposited in Jan 2019 and then reversed, but withholding was sent to the Feds.  If I get an EIN and file a 1041 for the refund (which is what the Feds are saying 'may' need to be done in their usual form letter), how do I indicate on the 1041 that the withholding is in the SSN of the deceased?  I can't file a 1040 for 2019 because Decedent's DOD is 2018.  

I know that I can attach a copy of the 1099-SA showing the withholding, and I can add a statement to the return, but I don't have too much faith in the service right now in terms of getting the money transferred and refunded.  I'm not certain anyone is actually reading notes/attachments.  It's several hundred dollars, so it's enough to worry about.

Anyone have any pearls of wisdom?

 

Thanks much!

[DANRVAN]

5 hours ago, jasdlm said:

SS was deposited in Jan 2019 and then reversed, but withholding was sent to the Feds.

I am not sure if I am following you on this.  

If SS was deposited in decedent's bank account and then returned to SSA, then why would estate have a claim on withholding.

 

 

[Pacun]

If you have the form showing 0 income and a few hundred dollars withheld... you can try. 

If you don't have that form, then don't bother because the SSA might have also reverted the withholding.

[DANRVAN]

On 11/20/2020 at 7:59 AM, Pacun said:

you have the form showing 0 income and a few hundred dollars withheld

If that were the case you would have income for the amount of withholding.

Let's say the gross was 2,000 and 200 was withheld for federal (disregard any medicare w/h) leaving 1,800 to deposit in the bank.

If 1,800 was returned and 200 left as credit for decedent, then reporting would be income 200 and federal withholding 200.

[Terry D EA]

I got to go with Danrvan on this. If the deposit was made to the decedent's account then reversed, how does the estate get to make a claim for the refund and I also agree with the scenario he gives. So, if the withholding is returned in 2019 it would be income and federal w/h of the same amount. That gives you  the right to file a 2019 tax return for the decedent which the decedent's representative could claim the refund.