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@thisblows  I'm not qualified to state whether a 1041 should have been filed in 2023.  If a 1041 was filed in 2023, then it needs to be amended for this extra $2900, and the amended K-1s will be sent to each heir, who will need to amend their 2023 personal tax returns to account for the money.  (I presume the heirs already have the money itself, you just didn't know there was a 1099 to go with it.)   If a 1041 was not filed, then I think @fanfare is probably on  the right track that you can report this as "income in respect of a decedent."  This still means that each heir who got a share of this money must report it on an amended 2023 tax return.  Since this is a 1099-INT, I assume the entire $2900 is taxable interest, and the principal was already distributed at some point.  If this was a long-term interest bearing account, then interest that accrued (but was not paid) prior to their deaths might be reportable on their 2020 tax return, and only interest that accrued after their death is reportable by you, but reopening the 2020 return is another can of worms you might not want to open, and the simplest thing to do is for each heir who got a share of the estate to report the same percentage of the $2900 as income in respect of a decedent on their 2023 tax returns. 

I concur with Bsch4477's answer, it is most likely not taxable for the reason's stated.   But, the bottom line may be how your employer handles it at W-2 time. If they do not include the value of the housing in box 1 of your W-2 (and they most likely won't), the housing value is not taxable to you.    Q. Is this  nontaxable fringe benefits per Pub FB-15? A. Maybe, depending on other details. More likely,  this is the employer directly paying out of town business expenses.  Either way, it should not be taxable to you. 

You are required to file using either married filing jointly or married filing separately.   Yes, you can amend, the instructions are here. https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-already-filed/L4VjJ9BA2_US_en_US   If you file jointly, you must declare and pay tax on all your combined worldwide income.  If your spouse is overseas and earns income overseas, this may mean paying tax on the same money twice, although there is an offsetting deduction.  Depending on where your spouse lives, what their income is, and if they also pay taxes overseas, you may want to file married filing separately or jointly.  It depends on your exact situation and there is no one size fits all answer.  

If you have not registered, paid or e-filed you can clear and start over   CLEAR AND START OVER   https://ttlc.intuit.com/turbotax-support/en-us/help-article/change-service-level/clear-start-turbotax-online/L37BZFuBV_US_en_US?uid=m6b26ost

The stocks owned by your parents, as well as the residence they owned, should have received a step-up tax basis equal to the market value in December 2020, and only the appreciation between the 2nd date of death and when the assets were sold would be subject to long-term capital gain.  There was no need to dig up your parents's original purchase price.  I suggest you find a qualified CPA oe EA to review the estate's Forms 1041 for 2020, 2021 and 2022 and to prepare the final 2023 form 1041. It's too late now, but an estate could have elected to file its Form 1041 on a fiscal year basis, meaning it could have elected a year end date not ending on December 31st.  Please don't go back to H&R Block.   Other than the professional fees paid in 2023, the property taxes paid on their residence should be tax deductible on their final 2023 fiduciary tax return too.  The maintenance costs may be subject to a 2% floor.  Your new CPA/EA should be able to guide you on that.  If you have any additional questions after meeting with the new tax preparer, let me know.  Your attorney should know a 2023 Form 1041 was due since s/he was familiar with the size and composition of the estate because s/he needed to file an accounting with the Court in order to close the probate.  I'm afraid you had received some bad advice.

@cadottethomas83     At least you know the IRS received your return and is working on it.   Only the IRS will know what all they are doing.   You can try to find out more info by calling them.   IRS: 800-829-1040 (7AM-7 PM local time) Monday-Friday   If you get a robot that asks you to speak your issue, just try saying "speak to an agent about my account."   You may have to keep replying with that a couple more times.   If you can't get good info by phoning the IRS, or if you are having an economic hardship, you can try to see if the IRS Taxpayer Advocate Service will help you.   https://www.irs.gov/newsroom/taxpayer-advocate-service-a-taxpayers-voice-at-the-irs   https://www.taxpayeradvocate.irs.gov/   https://www.taxpayeradvocate.irs.gov/get-help/refunds/i-dont-have-my-refund/

If you're using Home & Business, it will break down the information for both your business(es) AND your personal filing information into a single return.   Your income from your business (along with any other income) would be included and it will figure out your self-employment taxes, etc.

Thank you @AmeliesUncle !   Now, I am confused as to how much I need to include in the 'Other expense' of Section 481(a) Adjustment.   Let's say my Cost Seg breakdown is as follow: 5 yr asset -> $20K 15 yr asset -> $6K 27.5 yr asset -> $150K after excluding land cost.   I will enter the following as depreciation for the tax return: 1. Depreciations: 5 yr -> cost basis $20K.   Current depreciation without bonus depreciation calculated by TTX, lets say $10K 15 yr -> cost basis $6K.  Current depreciation without bonus depreciation calculated by TTX, lets say $500 27.5 yr -> cost basis without land cost $150K.  Current depreciation without bonus depreciation calculated by TTX, let's say $5K.     Let's say Form 3115 has the section 481a adjustment as $35K.   How do I calculate how much I need to fill out in the 'Other expense under 481a adjustment'?  1. As it meaning the whole $35K or 2. Should I minus the 5 yr and 15 yr assets depreciation which were already calculated by TTX from the total $35K?  Meaning $35K - $10K - $500 = $24500? Or 3. Something else?    

  Exception: It can be non-taxable if it meets the IRS’s “convenience of the employer” test (IRC §119): On the business premises – The lodging must be on or near the employer’s place of business. For the employer’s convenience – Provided for business reasons, not just as extra compensation. Condition of employment – You must be required to accept the lodging to properly do your job.    

IRS Pub 559 -- "If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return. Income in Respect of a Decedent All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent. How To Report Income in respect of a decedent must be included in the income of one of the following. The decedent's estate, if the estate receives it. The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it. Any person to whom the estate properly distributes the right to receive it." @thisblows 

Thanks again for this reply, I really appreciate it!   Your directions are very clear, and I really appreciate the thorough instructions. But I guess I have some concerns going down this road --mainly double taxation.   From what you're advising, it seems like you're directing me to just claim this income as income from a US employer why failed to give me a w-2. My issue is, I've already been taxed by the Canadian government on that income, and I don't need to pay taxes to two countries for one income. There's no indicating that this income came from a foreign country in your suggested process. There is a Canadian Tax ID number for the employer, so it doesn't seem necessary to pretend that there isn't. How would I later get reimbursed for double taxation if I don't enter the Canadian employer's Tax ID #? I would miss out on my tax refund that I'm owed by the CRA.   (Important note: I'm in the process of changing to non-resident citizen status, thus why I haven't filed my Canadian taxes yet --I was advised to do my US taxes first by the CRA).   My understanding of "declaring world income" (and I'm definitely no expert) is that you're just stating that you have income from a different country, and need to be upfront on all your streams so that each country is in the loop. My plan has always been to file my Canadian income on a separate instance of Turbotax.ca (like I did before I moved to the US) and notify them of my US world income, that they are not entitled to. But if I claim this income under the guise of a US employer who failed to give me w-2, forfeiting my Canadian return.

Have you e-filed already?   You are posting from TurboTax Live.  You can arrange for the Live help you are paying the extra fee for with your questions from 5 a.m. to 5 p.m. Pacific time Monday - Friday.   https://ttlc.intuit.com/turbotax-support/en-us/help-article/product-setup/connect-tax-expert-turbotax-live/L73wOZD5D_US_en_US?uid=m8zw1pbb