Income With Respect To Decedent

Income in respect of a decedent ird is the gross income a deceased individual would have received had he or she not died and that has not been included on the deceased individual s final income tax return.

Income with respect to decedent. Regardless of accounting method ird is subject to income tax when a triggering event generally the actual receipt of the income by the beneficiary occurs. Income in respect of a decedent ird is untaxed income that a decedent has earned or had a right to receive during his or lifetime. Income in respect to decedent includes the taxable portions of annuities traditional iras and tax deferred retirement plans series ee u s. Uncollected salaries wages bonuses vacation pay and sick pay earned before death but paid after death.

Income in respect of a decedent ird is money owed to a person before they passed away like a salary or wages. The person or entity that inherits the income pays the taxes. Deductions in respect to a decedent. If like most people the deceased individual was a cash basis taxpayer ird is income that the decedent earned but did not receive.

Sources of ird include but are not limited to the following.