About Helen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question i saw a response on a question on executor fees. Executor fee I understand would be taxed as income, but what about the executor's role in paying out the fee to themselves. Is this fee paid like a bill out of the estate or is it that the executor pay themselves as an employee and need to file W-2 and perform withholding of social security and other such withholding taxes
Answer The fee comes out of the estate and is reported on a 1099. The amount (for tax time) goes on line 21 of the 1040, and is just taxed as normal income (same as bank interest). It is also taxable to your state and local taxing authorities if you have them.
