I'm so sorry for your loss!
Yes - for 2019 you file an individual return for your Mom and include all the income she received up to her date of death. You will be asked for a date of death, but you do not have to include a copy of the death certificate.
You will also need to complete Form 1310 - Statement of Person Claiming a Refund Due a Deceased Taxpayer. To access this form in TurboTax,
- Click the Search icon (magnifying glass) at the top of the screen,
- Type form 1310.
- Click on the hyperlink that appears: Jump to form 1310.
There are several other returns to consider besides the 1040:
Form 706 - United States Estate (and Generation-Skipping Transfer) Tax Return
This return is required if your mom's assets exceed $11,400,000. If not, don't worry about this one.
Form 1041 - U.S. Income Tax Return for Estates and Trusts for her ESTATE
This return is required if the estate generated more than $600 in annual gross income. Before filing Form 1041, you will need to obtain a tax ID number for the estate.
- File a 1041 for the estate if the income exceeds $600.
- Include income received between your mom's date of death and the trust start date.
- Include fees relating to the estate: executor fees; attorney fees; taxes; probate fees; etc.
Form 1041 - U.S. Income Tax Return for Estates and Trusts for the TRUST
Again, this return is required if the trust generates more than $600 in annual gross income. This return includes any income generated by the trust.
For estate and trust returns (1041) you will need TurboTax Business. You can visit the following link to purchase the program: TurboTax Business. The business version walks you through an interview similar to the personal (1040) product.
If you have to file a trust and/or estate return, do this before you prepare any of the beneficiaries personal returns (you, for example). As part of preparing the 1041 returns, TurboTax will prepare K-1 forms for each beneficiary. The beneficiaries will need to enter the information from the K-1 into their personal 1040 returns.
