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New Member
posted Jan 28, 2023 10:19:51 PM

Do I need to file a 1041 tax form if I received money as a beneficiary, and If so can I do that through TurboTax?

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1 Best answer
Level 15
Jan 29, 2023 5:19:26 AM

Form 1041 is an tax return for income paid to an estate or trust, not for income paid to an individual.  Income in respect of a decedent that that is paid to you goes on your individual tax return, Form 1040.

 

If an estate or trust received income in respect of a decedent of $600 or more, the estate or trust must file Form 1041.  The estate or trust can then pass the income through to estate or trust beneficiaries on Schedules K-1 for taxation on the beneficiaries' individual tax returns and then take a deduction for the distributable net income.

 

Intuit sells TurboTax Business for Windows (not TurboTax Home & Business) for preparing Forms 1041.

1 Replies
Level 15
Jan 29, 2023 5:19:26 AM

Form 1041 is an tax return for income paid to an estate or trust, not for income paid to an individual.  Income in respect of a decedent that that is paid to you goes on your individual tax return, Form 1040.

 

If an estate or trust received income in respect of a decedent of $600 or more, the estate or trust must file Form 1041.  The estate or trust can then pass the income through to estate or trust beneficiaries on Schedules K-1 for taxation on the beneficiaries' individual tax returns and then take a deduction for the distributable net income.

 

Intuit sells TurboTax Business for Windows (not TurboTax Home & Business) for preparing Forms 1041.