Only the amounts constructively received before her death go on the personal Form 1040. Any income received after death goes on Form 1041 or the tax return of the beneficiary who received it. In order to prepare a trust income tax return, you need TurboTax Business - which is only available on the Windows platform; there is not a MAC version, unfortunately. The link has more information. And yes, David is referring to a Form 1041 - not the final personal tax return.
Upon the death of a taxpayer, a new taxpaying entity—the taxpayer's estate—is born to make sure no taxable income falls through the cracks. Generally, income is taxed either on the taxpayer's final return, on the return of the beneficiary who acquires the right to receive the income, or if the estate receives $600 or more of income, on the estate's income tax return (Form 1041).
For more information on filing a final return, please see Death in the Family. @Kennbu
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