topic Death in 2020, Pension received in 2021 in Get your taxes done using TurboTax

Death in 2020, Pension received in 2021

micecs — Mon, 09 Mar 2026 09:06:23 GMT

My son passed away in 2020. I filed Turbo tax for that year 2020, but not all funds were distributed in 2021. Therefore, I now have one 1099-R for 2021 for funds. These are pension funds and therefore are to his SS#. Turbo tax has an issue because the software does not allow one to enter the death on 2020 for my son. If I enter the death of my son to be 2021, instead of 2020, then there are additional issues such as the $1400 stimulus check, which he is not entitled to because he passed in 2020. This should be very common issue for Turbo Tax because death funds are typically never distributed within the year. So there must be an easy way around this issue. Possibly, I may have to use a different form to file? Thanks for any insight.

Re: Death in 2020, Pension received in 2021

ErnieS0 — Fri, 04 Mar 2022 23:59:34 GMT

You should not prepare a 2021 Form 1040 for someone who passed away in 2020.

Who received the funds? Generally the distribution will be reported as income to the beneficiary. You can call the company and ask to reissue a 1099-R.

If the money did not go to a beneficiary, you can file Form W-7 to obtain an EIN number and file a Form 1041 estate tax return if the money did not go to a beneficiary.

Re: Death in 2020, Pension received in 2021

micecs — Wed, 09 Mar 2022 02:42:10 GMT

Thanks for the reply. The 1041 Estate is not a simple form and multiple tax accounts are typically not familiar with filing this. My thoughts are to try Turbo tax Live. Is Turbo Tax Live able to do this? Your advice is correct, but tbe tax on these funds due to the entity sending the funds greater than one year after my son's death appear to be significant. Once agsin thanks for your advice.

Re: Death in 2020, Pension received in 2021

ErnieS0 — Wed, 09 Mar 2022 02:59:16 GMT

TurboTax Live offers limited help with estate and trust returns. Our experts can help with navigations issues but do not offer tax advice,

You can prepare a Form 1041 using TurboTax Business which is only available in a Windows version. Entering one 1099-R would not be too complex. There is an interview, but it's not as detailed as TurboTax Online. If you live in a state with an income tax, you'd have to prepare state as well.