Can client report interest received on joint revocable trust if bank reported the interest using deceased husbands SSN?

Forum|Forum|5 years ago
March 10, 2021
4 replies
31 views

Client states that both SSN's were used when the trust was created. But now that the husband is deceased, shouldn't the bank correct the 1099-INT to report the interest using her SSN, or can it still be filed on her return as is? I'm of the opinion that it should be corrected, but she says her bank says it's ok.

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Best answer by sjrcpa

If the joint trust provides that all the assets belong to her when he died, then yes she can report all of the income.

She needs to speak to someone else at the bank because you're not supposed to issue 1099s under a dead person's SSN. They should change it going forward.

sjrcpaAnswer

Level 15

If the joint trust provides that all the assets belong to her when he died, then yes she can report all of the income.

She needs to speak to someone else at the bank because you're not supposed to issue 1099s under a dead person's SSN. They should change it going forward.

The more I know the more I don’t know.

L

Love2CruiseAuthor

Level 5

I advised her during our review that it needs to be changed. I will reiterate this to her once again. Thanks so much! Really appreciate it.

BobKamman

Level 15

As a wise man once wrote, "We have a tax in this country on income, not on pieces of paper." If the interest belongs to her, it belongs on her return. If the bank doesn't change it by next year, they are likely to get a letter from IRS telling them to start withholding federal tax on the interest because the SSN is not valid.

L

Love2CruiseAuthor

Level 5

Maybe that's what it'll take for them to make sure they stay up to date on these matters. They should have changed it when she presented the death certificate to them. Many thanks for the valuable information.

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