For the 1099-K information, if the issuer is not willing to provide a corrected 1099-K form to break out the income earned when your mother was still alive and up to her date of death, and another 1099-K starting after she passed, you can definitely break it out on the individual return. This will ensure the correct amount is reported on the individual return and the trust return.
When you amend your mom's final return, I'd recommend making this adjustment on the Schedule C input for the individual return itself to ensure you are not overpaying any self-employment tax on her final return.
- To make this reduction on her amended final tax return, log back into TurboTax and select the Business section.
- Select Business income and proceed through the screens until you see the option for Other Income.
- Select start/update to the right of this and make your adjustments listing the trust's EIN on this screen. Enter a negative amount for the income amount that should be allocated to the trust.
This adjustment will be reflected on the Schedule C worksheet. Retain this information should the taxing agencies request additional support.
Also, when you list the reason for amending the return, you can also put the trust EIN number in the description, as well as providing the amount of income that is being allocated to the trust.
I am sorry for your loss.
@rhalexda
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