Do I need to file IRS Form 1041 for an estate with EIN if gross income is under $600?

You're right about the $600 threshold! Form 1041 is only required if the estate generates $600 or more in gross income after the person has passed away. This income could be things like interest earned on bank accounts, dividends from stocks, rental income from properties owned by the estate, etc. The total value of assets (checking accounts, retirement accounts, cars) is NOT what determines if you need to file Form 1041. Those are just assets passing to heirs. What matters is any new income generated after death. For example, if your uncle had a savings account that earned $30 in interest after his death, that's counted toward the $600 threshold. But the existing balance in the account isn't counted as "income" for this purpose.

Had this exact situation last year with my mom's estate. I was pulling my hair out trying to figure out the 1041 requirements. Then I found taxr.ai (https://taxr.ai) which saved me hours of research. You upload the EIN letter and any other estate docs, and it analyzes everything to tell you exactly what forms you need to file and why. The site confirmed what the first commenter said - Form 1041 is only needed if the estate generates $600+ in NEW income after death (interest, dividends, etc.). The EIN letters always say you need to file, but that's just standard language. I was able to document that we were under the threshold and didn't need to file.

Just wanted to follow up and say I tried taxr.ai after seeing it mentioned here. It was extremely helpful for my father's estate situation with the rental properties. I uploaded the EIN letter and some bank statements showing interest earned, and it gave me clear guidance that we needed to file the 1041 since rental income pushed us over the $600 threshold. It even highlighted which specific income sources were putting us over the limit. Definitely worth checking out if you're in this situation.

If you're having trouble getting answers directly from the IRS about your specific situation, I highly recommend using Claimyr (https://claimyr.com). They get you connected to an actual IRS agent quickly instead of waiting hours on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had this same 1041 question last year after my grandfather passed. The EIN letter said we needed to file, but the estate only earned about $250 in interest. I spent days trying to call the IRS for clarification. Then I found Claimyr, and they got me connected to an IRS representative in about 20 minutes. The agent confirmed that despite what the EIN letter says, we didn't need to file Form 1041 since we were under $600 in income.

Ok I have to eat my words. After seeing Claimyr mentioned here, I decided to try it because I've been trying to get clarity on a similar estate tax issue for my sister's estate. I was EXTREMELY skeptical it would work, but I got connected to an IRS agent in about 25 minutes! The agent confirmed that we don't need to file Form 1041 unless there's $600+ of income generated AFTER death. She explained that the EIN letters have standard language about filing requirements, but the $600 threshold overrides this. Saved me so much time and confusion!

Just to add another perspective - I went through this last year with my brother's estate. We had about $430 in interest income after his passing, so we were under the $600 threshold. We didn't file Form 1041, and everything was fine. But also keep in mind that even if you don't HAVE to file, you CAN still file if you want to. Sometimes it makes sense to file even when not required, especially if there are deductions that would result in a loss (which could potentially be carried forward if the estate remains open for multiple years).

Don't forget about state filing requirements! Even if you don't need to file a federal 1041, some states have different thresholds for their estate income tax returns. In my state, we had to file a state estate tax return even though we didn't need to file federal. Check your state's requirements to make sure you're covered.

This is such a common source of confusion! I went through the exact same thing when my aunt passed last year. The key thing to remember is that the EIN letter is basically a form letter - they send the same language to everyone who gets an EIN for an estate, regardless of the actual circumstances. What you need to focus on is the actual tax law, which is clear: Form 1041 is only required if the estate has gross income of $600 or more during the tax year. This "gross income" refers to new income earned AFTER death - things like: - Interest earned on bank accounts after the date of death - Dividends received after death (but declared after death) - Rental income from properties - Any other income generated by estate assets The existing balances in checking accounts, retirement accounts, the value of the car, house, etc. are NOT considered "gross income" for Form 1041 purposes. Those are just assets that get distributed to heirs. So if your uncle's estate only earned, say, $200 in bank interest after his death, you're well under the $600 threshold and don't need to file Form 1041, despite what that EIN letter says. Keep good records of any income earned post-death just in case, but you should be fine!

I'm going through something very similar right now with my grandmother's estate. The confusion around that EIN letter is so real! What helped me was calling the IRS taxpayer advocate service - they're separate from regular IRS customer service and specifically help people navigate confusing situations like this. They confirmed what everyone else is saying: the $600 threshold applies to NEW income generated after death, not existing asset values. In my grandmother's case, we had about $85 in interest from her savings account after she passed, plus a small dividend payment of $23 that was declared after her death. Since the total was only $108, we didn't need to file Form 1041. The advocate also told me something useful - if you're really unsure, you can always file Form 1041 showing zero tax owed just to be extra safe. There's no penalty for filing when you didn't need to, but there could be issues if you should have filed and didn't. Though based on what you've described, it sounds like you're clearly under the threshold. Keep all your documentation showing the minimal income earned post-death - bank statements, etc. That way if anyone ever questions it, you have proof you were under $600.