I have done my moms taxes with TurboTax for the past 6 years. She dies in 2022. How do I do her taxes in a Business return?

[RobertB4444]

If your mom passed in 2022 then she doesn't have a tax return due for 2023.  If she had a business that she was running when she was alive that someone else has continued after her death then the person who is continuing the business would need to file a business return for that business for 2023.  

If you are still working on her 2022 returns then you would file for her and her business the same way that you did every other year except that when TurboTax asks if the person you are filing for is deceased then you will say yes and enter the date of death.  This notifies the IRS that this is the final return for this person.

Sorry for your loss.

@jopaped 

[jopaped]

Thanks for the quick reply! I guess I should of explained my question better. She died in 2022 and I buttoned almost everything up on the return from last year. However, her estate did get a 1099R for some money left in a CD early in 2023 and I did elect to have the bank withhold 25% for taxes when the CD was closed. I guess I need to file a 1041 return just to be safe?

[DianeW777]

It's up to you.  If you are the beneficiary and you received the money from the 1099-R/CD then you would report the income and the withholding. If there are more than one beneficiary then a Form 1041 may be the best way to go, however there is also a process for you to nominee the income to the appropriate beneficiaries who actually own the income after death. This could eliminate the estate return and each person file their proportionate share.

Nominee Returns.  This is how the IRS knows what you are doing.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list the estate as the payer and the other owner, as the recipient. On Form 1096, list the estate as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096
• Form 1099-R

@jopaped