gn
Level 3

In lacerte how do we split income and taxes withheld between the decedent's final 1040 and the estate 1041 in the same year? An example is with a 1099 of interest income for 2020 the decedent dies March 31st and pick up 3 months of interest and tax withheld on the final 1040, then the estate 1041 picks up the 9 months after death reported on the same 1099 to the decedent which covers all of 2020, so the bank does not split a 1099 between the decedent and the estate, the bank gives 1 form 1099 covering all of 2020 to the decedent. 

How is this shown on the Schedule B is it the total interest on the 1099 on the decedent's final 1040 with a negative taking out the 9 months which goes to the estate 1041? If so is there a description to use on both returns. Also the bigger question, is there a requirement to prepare a second form 1099 for the 9 months of income and taxes withheld to the estate from the decedent? How does the IRS and state know the split comes from the total on the same 1099 from the bank? 

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