Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: how to report Executor income Date: 9/4/2013 9:55 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
DH is Executor on two estates that may wrap up this year. He will be able to get paid for his time, and so I am thinking that he will receive a 1099 for that income that we will report on our taxes. I am also thinking that since this will be 1099 income, there will be no FICA, and so won't he owe the other 7.5% of FICA like on his self-employment income? And does that mean this gets reported on his Schedule C? Or is this considered something else, and just gets lumped in somewhere on our 1040 with no additional FICA taken out anywhere?

The fees he receives as Executor should be reported to him on Form 1099-MISC if greater than $600. How the fees get reported on your (if filing jointly) return depends on whether he was acting in a personal or professional capacity with regard to being an Executor.

If he routinely acts as an Executor, or acting as Executor would be a logincal extension of other professional services he provided to the deceased, the income would be reported on Schedule C and be subject to SECA (both sides of FICA/medicare).

However, if he was named as Executor due to his status as a family member or personal friend and he doesn't routinely serve as an Executor, then the income is reported on Line 21, Other Income and is not subject to FICA/medicare (SECA). The 1099-MISC will probably report the fees in Box 7, but they could appear in Box 3. If Box 7, you can expect a follow-up letter from the IRS, since the IRS assumes all Box 7 payments are subject to SECA. All you will have to do is explain the nature of the payment and the IRS will be satisfied.

Ira
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement