Filing for a Deceased Parent

Forum|Forum|4 years ago
April 8, 2022
3 replies
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Parent died in 2020, Turbotax forces me to enter a 2021 date. Also, the stimulus gets applied to this year when the parent has been deceased the entire year. How do I fine for someone who passed away in 2020?

fanfare

Level 15

the final tax return for someone who died in 2020 would be a 2020 Form 1040.

LeonardS

Level 14

If your parent died in 2020 you will need to file a tax return you 2020 not a 2021 tax return.

These TurboTax links

https://How do I prepare a 2020, 2019, or 2018 tax return?
https://Can I e-file a tax return for someone who is deceased?
https://Can I file Form 1310 in TurboTax? have information you may find useful.

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Opus 17

Level 15

All the income your parent had up to the date of their death would be reported on their 2020 tax return. There was a box to check for "this person passed away in 2020."

Any income received by the person after the date of their death is actually received by their estate, and you would have to file a form 1041 estate tax return. The estate also needs a special tax number, it can't use their SSN. You can't file an estate return with regular turbotax, you need Turbotax Business, which is a separate program only available by download or CD for PC, there is no Mac or online version.

If your parent received a round 3 stimulus payment (EIP 3, paid in February-April 2021) but they died before 1/1/21, you must return it to the IRS, but a tax return is not required.

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-topic-i-returning-the-third-round-economic-impact-payment

Do you have another reason to file a 2021 tax return for your parent?

boodajonesAuthor

Level 2

I did NOT get stimulus payments. I did get 1099-C, 1099-DIV and 1099-MISC forms.

Opus 17

Level 15

@boodajones wrote:

I did NOT get stimulus payments. I did get 1099-C, 1099-DIV and 1099-MISC forms.

OK, then I'm confused about why you mentioned the stimulus in your question.

If your parent has income after their death, you need to file an estate tax return. Start here.

https://www.irs.gov/businesses/small-businesses-self-employed/deceased-taxpayers-filing-the-estate-income-tax-return-form-1041

You would need an EIN for the estate, and you need Turbotax Business. You may want professional advice depending on the complexity of the estate and whether this was one-time income (and a one-time estate tax return) or is something that will be ongoing.