Income received for decedent is included in the 1099-div form for the TOD account of the decedent, and not paid to estate and not paid to beneficiaries directly. The estate is small enough that it does not require a form 706 or to file a return. The only reason to file such a return would be to create the schedule k1-s for the distribution of income to the beneficiaries, but since it was TOD, the estate never held that income. So, the income on the decedent's final return will only include dividend and capital gain distributions paid into the account of the decedent before death for the year of death, while the beneficiaries will claim the remaining div and cap gain distribution income paid to decedent after death on their own tax returns. I have an explanation of this on the 1099-div form turbotax creates, but clicking on the numbers for box 1a, 1b, and 2a, and in the explanation dialog box (terrible usability by the way since it does not permit cutting and pasting of a paragraph with line breaks) I include the original number in the 1099 on one line and then a negative number on the next line, that negative number being the amount that the beneficiaries are claiming on their tax returns. I just need to know how Turbotax includes this explanation with the filed return, since the 1099-div is not included in the filing. Thank you so much.
