I was the personal representative (executor, administrator, etc.) for my father’s estate when he died. Is the fee I received subject to income tax or self-employment tax?
Modified on: Sun, 5 Feb, 2017 at 6:55 PM
Any amount received for performing services as a personal representative for someone’s estate is subject to income tax. If you are not in the business of being a personal representative, the income is reported as “Other Income” on your Form 1040 and not subject to self-employment tax.
If you are in the business of being a personal representative, you will report the income on Schedule C, and pay self-employment tax on your net profit. You are deemed to be in the business of performing services as a personal representative if you conduct the service on a regular and continuous basis.
Generally, if you are named as a personal representative for a friend or relative’s estate, you are not in the business as a personal representative.
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