How do I report income received as an executor of a trust on my taxes?

The income you received as an executor should be reported as self-employment income on Schedule C, even if this was a one-time thing and not your regular profession. The IRS considers executor fees as self-employment income subject to both income tax and self-employment tax. The entity that paid you should issue a 1099-NEC (not MISC or S) since this is non-employee compensation. When you receive this form, you'll report it on Schedule C of your tax return. While you mentioned not having expenses to write off, you should still consider if there were any costs directly related to your executor duties that weren't reimbursed by the estate. As for tax rates, it's not that 1099-NEC income is taxed "higher" exactly, but rather that self-employment income is subject to both income tax (same rates as your regular income) plus self-employment tax (15.3% for Social Security and Medicare).

I went through this exact same confusion last year when I was executor for my uncle's estate. After hours of research and getting nowhere, I finally found taxr.ai (https://taxr.ai) and it was honestly a game changer. You upload your documents and their system analyzes your specific situation, even with complicated stuff like executor fees. In my case, they pinpointed that since I wasn't in the business of being an executor, I could potentially report it as "Other Income" and avoid self-employment tax, saving me around $2,000. They even provided specific tax court cases I could reference if I ever got questioned by the IRS. Seriously worth checking out for your situation since it seems like even professionals are giving you conflicting advice.

Just wanted to follow up here. I tried taxr.ai after seeing this thread and seriously, thank you for recommending it! I uploaded my documents showing I received executor fees from my mom's estate, and they provided a detailed analysis explaining exactly how to report it. In my situation, since I only did this once and had no intention of making it a business, they confirmed I could report it as "Other Income" on Schedule 1 and avoid self-employment tax. They even provided references to specific tax court cases (Blodgett v. Commissioner) that supported this position. My tax preparer was initially skeptical but was impressed with the documentation and agreed with their approach. Saved me over $1,500 in self-employment taxes!

If you're still having trouble with this and need to talk to someone at the IRS directly (good luck with that), I highly recommend using Claimyr (https://claimyr.com). After spending FOUR HOURS on hold trying to get clarification on executor income reporting, I gave up and tried this service. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c They somehow got me connected to an actual IRS agent in about 15 minutes when I had been struggling for days. The agent confirmed that for one-time executor fees, reporting as "Other Income" was acceptable in my case, though they cautioned it depends on specific circumstances. Seriously saved my sanity during tax season.

I'm back to eat my words. After my skeptical comment, I was still desperate to talk to the IRS about some executor fees I received, so I tried Claimyr. I honestly didn't expect much, but they got me through to an actual human at the IRS in about 20 minutes when I had previously spent over 3 hours on hold before giving up. The IRS agent I spoke with confirmed that my executor fees (about $8,000) could be reported as "Other Income" on Schedule 1 since this was a one-time thing for a family member and I wasn't in the business of being an executor. The agent specifically mentioned that this approach would avoid self-employment tax, which saves me quite a bit. Definitely worth the service fee considering how much tax I'll save and the hours of frustration I avoided.

Just want to add another perspective here that might be helpful. I'm a paralegal at a firm that handles estates, and we typically advise our client's executors that how you report the income depends on the nature of your relationship to the deceased. If you're a family member who was named as executor in the will, and this is not something you do professionally, you can often report it as "Other Income" on Schedule 1, Line 8z. This typically avoids self-employment tax. But if you were selected because of professional skills (like if you're an attorney or accountant), then it should go on Schedule C and is subject to self-employment tax.

Anyone ever use TurboTax to report executor fees? I'm in a similar situation and wondering if the software handles this correctly or if I need to use a tax professional this year.

This is such a helpful thread! I'm dealing with a similar situation where I served as executor for my grandmother's estate. Based on everything I'm reading here, it sounds like since I was chosen as a family member (not for professional skills) and this was a one-time thing, I should be able to report the executor fees as "Other Income" on Schedule 1 rather than Schedule C. My main concern is making sure I have proper documentation in case the IRS ever questions this approach. Has anyone here ever been audited on executor fee reporting? I want to make sure I'm prepared with the right justification if needed. The amount I received was around $12,000, so it's significant enough that I want to get this right. Also wondering if anyone knows - do I need to receive a 1099 form for this, or can I just report it based on the estate records showing the payment to me as executor?

I'm dealing with this exact same situation right now! Served as executor for my father's estate last year and received about $15,000 in fees. The whole Schedule C vs "Other Income" debate has been keeping me up at night because that self-employment tax would be a huge hit. From everything I'm reading in this thread, it sounds like since I was named as executor because I'm his son (not because of any professional expertise - I'm actually a teacher), and this was definitely a one-time thing, I should be able to report it as "Other Income" on Schedule 1. The distinction about family relationship vs professional selection seems to be the key factor. Has anyone here actually filed their return using the "Other Income" approach yet? I'm planning to do my taxes next week and want to make sure I'm not missing anything important. Also wondering if I should include a statement with my return explaining the reasoning, or if that just draws unwanted attention.

This thread has been incredibly helpful! I'm currently dealing with executor fees from my mother's estate and was getting completely different advice from different sources. The distinction everyone's making about family relationship vs professional appointment really clarifies things for me. I was named as executor specifically because I'm her daughter and she trusted me to handle things properly, not because I have any background in estate management (I work in retail). Based on the discussion here, it sounds like I should be able to report the fees as "Other Income" on Schedule 1 rather than dealing with the self-employment tax hit on Schedule C. One question - for those who have already filed using the "Other Income" approach, did you receive a 1099-NEC from the estate? The estate attorney mentioned they might need to issue one, but I'm not sure if that changes how I should report it. The amount is around $8,500, so definitely want to get this right the first time.

This has been such a valuable discussion! I'm dealing with this exact situation right now - served as executor for my late brother's estate and received about $11,000 in fees. Like many others here, I was chosen because of our family relationship, not any professional expertise (I'm actually a nurse practitioner). Based on all the insights shared here, especially the distinction between family appointment vs professional selection, it seems clear I should report this as "Other Income" on Schedule 1 rather than Schedule C. The potential self-employment tax savings would be substantial. One thing I'm curious about - has anyone here ever had the IRS question this approach during an audit or review? I want to make sure I'm prepared with the right documentation. I have the will showing I was named as executor, court appointment papers, and payment records from the estate. Should I also keep any specific tax court case references handy, like the Blodgett case mentioned earlier? Thanks to everyone who shared their experiences - this thread has been more helpful than multiple consultations with tax professionals!

I've been following this discussion with great interest since I'm in a very similar situation. I served as executor for my stepfather's estate last year and received $13,500 in fees. Like many others here, I was chosen because of our family relationship and his trust in me, not because I have any professional background in estate management (I work in IT). The consensus in this thread about using "Other Income" on Schedule 1 for family-appointed executors makes a lot of sense, especially given the substantial self-employment tax savings. The distinction between family relationship vs. professional appointment seems to be the crucial factor that even some tax professionals miss. I'm planning to file next week using the "Other Income" approach based on all the great insights shared here. I have all the documentation others mentioned - will, court appointment, payment records, and I've also saved references to the relevant tax court cases. It's reassuring to hear from people who have already successfully filed using this method. One quick question for those who've filed - did any of you include a brief description in the "Other Income" section, or just enter the amount? I'm wondering if adding something like "Executor fees - estate of [name]" helps with clarity or if it's better to just list the amount. Thanks again to everyone for sharing their experiences!