As I understand it the Interest paid prior to the date if death is the account owners interest and goes on the deceased final tax return. Interest paid after the date of death is the estates or beneficiary of the account (if the bank account was a joint account or had a named benificuary) and goes on the estate or beneficiaries tax return.
I received a POD account in December so I should be responsible for one month's interest. The Bank sent me (under my social security number) a 1099-INV for the entire year. We will include the interest through November on the Deceased final return. How do I handle this on my taxes with the difference in what I owe in taxes vs what is on the 1099-INV reported to the IRS.
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