Income in respect of a decedent is subject to both income and estate tax at the Federal level.

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Income in respect of a decedent (IRD) is subject to both income and estate tax at the Federal level. IRD refers to income that the decedent would have received had they lived, but it was not received before their death. Examples of IRD include unpaid salary or wages, unpaid bonuses, and deferred compensation. IRD is reported on the decedent's final income tax return as well as on the estate tax return. The recipient of the IRD also pays income tax on it.

Income in Respect of a Decedent Is Subject to Both