In 2019, I used TurboTax Business 2018 to begin the process of winding down my deceased parent's estate. In 2020, I purchased TurboTax Business 2019 to complete the process. The TT 2019 installation transferred information from the TT 2018 filing, and correctly recognized it as a decedent's Estate. But it failed to generate form K-1 for the beneficiaries. There were no K-1s in the final report for filing, and when I clicked the button to generate K-1s, it declined to do so and told me that I needed to provide the names of shareholders (or something like that). It clearly seems to be confused because form 1041 is used for both partnerships and Estates, the former has shareholders, the latter has beneficiaries. I had provided the names (and other details) of the beneficiaries.
This is potentially a big deal, because there are a lot of people like myself who rely on TT to help us sort out unfamiliar tax situations. An executor is responsible to provide K-1s to beneficiaries, and anyone who fails to do that could be fined. TT doesn't even give an error message, so anyone acting as executor won't necessarily know that the program is not doing something that its supposed to do.
I ran the process a second time, declining to transfer from the 2018 return and opting to manually enter that information on my own. Then it generated the K-1s, but it left out important information, which apparently is the subject of yet another TT K-1 bug, described here: https://ttlc.intuit.com/community/business-taxes/discussion/estate-1041-k-1-box-11c/01/641846#M25333
Hey Intuit: you need to fix this, or people will start talking about how they missed out on a huge tax break because their executor used TurboTax to generate their K1 forms.
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@javaengineer wrote:
It clearly seems to be confused because form 1041 is used for both partnerships and Estates, the former has shareholders, the latter has beneficiaries.
I will report this (again) but, as an aside, Form 1041 is used by trusts and estates, not partnerships (which generally report on Form 1065).
However, there appears to be an issue with some transferred 1065 returns dropping partners from 2018 to 2019 so it begs the question as to whether the programming glitch (or other error) is related to transferred 1041s as well.
Thank you for indicating that someone will at least be told about this problem.
Please update TurboTax Business to insure accurate reporting of the Form 1041.
In the case of a death, the executor must file a Tax Return for Estates and Trusts (Form 1041) for a domestic estate that has:
Thanks for the pointer, but I don't think it applies in this case.
In my case, the estate had no tax due. However, there were other reasons to file a 1041.
Bottom line: I need TT to generate the 1041 and the K-1s, even though there was less than 600 of gross income in the tax year.
I see that your Form 1041 is more complex and requires attention to detailed information. It is evident that you have extensively researched the requirements for filing an accurate and complete Form 1041.
I am confident that TurboTax can accommodate the additional schedules that you need.
We are available to resolve any programmatic questions that you may still have.
@javaengineer You can submit your feedback in-product or in writing. However, only certain Intuit employees (such as Administrators) have access to your email address.
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