Get your taxes done using TurboTax

You can use the 2020 edition of TurboTax Business to prepare a 1041 where the fiscal year begins in 2020 and ends in 2021. 

 

Note, however, that you have to take into account any tax law changes since the 2020 edition of TurboTax Business is basically not programmed to do so. However, the tax bracket would be most relevant but that should not impact your 1041 since you are passing all of the income through to your beneficiaries.

 

Also note that the exemption is useless if all of the income (including gain) is passed through to the beneficiaries (i.e., if nothing is reserved to the trust).

 

Further still, the trust would not have to make estimated tax payments if it had no tax liability for the preceding 12-month period (i.e., if this is the initial and final return for the trust or if the trust had distributed all of its income/gain in previous tax years).