Social Security on Fiduciary Return?

[Gail in Virginia]

If social security pays a benefit to the estate after the final tax return of a taxpayer has been filed (and in this case after the first fiduciary return was filed), is a fiduciary return required to report the income?  Or even if it is the first fiduciary return, if the benefit is paid to the estate is it reportable on the 1041?  I don't see a place for 1099-SSA - just 1099-R,, etc.  If that is the only income, is a return required if the amount is greater than $600?

[kathyc2]

I had one last year of benefits paid to adult children.  Prior to May 97 beginning date for benefits all benefits were paid on the 3rd of the month.  Since then it's the 1st, 2nd, 3rd or 4th Wednesday so we will likely be seeing it more.  Benefits are delayed a month.  Someone dying today who is paid on the 3rd Wednesday would not have received his January payment before death. 

A claim for the money can be made via form 1724.  In addition to surviving spouse, that check can be paid to children (including adult) or parents. 

I wonder there were none of these that the payment was made to the estate. 

 

 

[Lee B]

3 hours ago, Gail in Virginia said:

If social security pays a benefit to the estate after the final tax return of a taxpayer has been filed (and in this case after the first fiduciary return was filed), 

You need to give more us more details because this scenario makes no sense.

[DANRVAN]

4 hours ago, Gail in Virginia said:

If that is the only income, is a return required if the amount is greater than $600?

I believe an estate is treated as any other taxpayer under section 86(b).

86(b) does not make any reference to "individual" vs estate.  Instead the code refers to any taxpayer in which the taxable portion of benefits applies.

Therefore in my opinion an estate is treated the same as an individual in computing the taxable amount.

1 hour ago, kathyc2 said:

I wonder there were none of these that the payment was made to the estate. 

I have seen it and reported as mentioned above.

[DANRVAN]

4 hours ago, Gail in Virginia said:

I don't see a place for 1099-SSA - just 1099-R,, etc. 

Report any taxable amount as other income.

[DANRVAN]

5 hours ago, Gail in Virginia said:

If that is the only income, is a return required if the amount is greater than $600?

If the SSA-1099 was under the estate EIN it would be a good idea to report the gross and deduct the nontaxable portion in order to prevent an under reporting letter.