For Deena Decedent, how much income should be reported on her final Form 1040?

For Deena Decedent, how much income should be reported on her final Form 1040?

• A. $32,000
• B. None, since she died during the year, her income is reportable on her estate's fiduciary income tax return.
• C. $15,000
• D. $47,000

Answer: (A)

Income on the final Form 1040 includes only what the decedent earned up to the date of death. Any income earned after death goes on the estate’s fiduciary return (Form 1041). So, if the year’s total income is 47,000 but 15,000 was earned after Deena’s death, only 32,000 belongs on her final Form 1040, with the remaining 15,000 reported on the estate’s return.

Income on the final Form 1040 includes only what the decedent earned up to the date of death. Any income earned after death goes on the estate’s fiduciary return (Form 1041). So, if the year’s total income is 47,000 but 15,000 was earned after Deena’s death, only 32,000 belongs on her final Form 1040, with the remaining 15,000 reported on the estate’s return.