Yes. the Form 1041 and Form 982 can be prepared in TurboTax. Form 1041 can be prepared in TurboTax using the Business version. Form 982
(Reduction of Tax Attributes Due to Discharge of Indebtedness) reports the amount of cancelled debt to excluded from taxable income. TurboTax will automatically generate Form 982 if your canceled debt is for a qualified principal residence indebtedness, aka mortgage debt relief.
However, based on my research since your father passed away in January 2020 your mother cannot file a joint return for 2021. Therefore, there is not a return to add the income unless there is an estate opened. If there was no estate or probate opened or the estate was closed, then there is nothing you can add it to. If you want to be cautious you can put "deceased " on it and send to the IRS with a letter or you can address it later if they contact you over it.
NOTE: If you are on the 1099-C as a joint recipient of the canceled debt, you need to include it on your return.
Form 1041
Form 982
