Deduction for Income in Respect of a Decedent. Turbo Tax Premier

[WilliamK]

In past years I have been able to use TurboTax to enter the deduction (not subject to 2% AGI) for IRD related to an estate tax return.  This year (2021) I cannot make it work.  I have read similar online posts and the answers from the experts.  I am convinced that there is a bug in TT 2021 Premier and the steps to enter the IRD deduction do not work as claimed.

[Anonymous_ · Accepted solution]

I believe you are referring to deductions in respect of a decedent (DRD), unless there was actually an estate tax return (Form 706) filed.

[with regard to this general issue see https://www.irs.gov/pub/irs-drop/n-18-61.pdf]

You will have to find a way (this might require Forms Mode) to get the entry of those (§67(e)) §1.67-4 expenses on Line 24z of Schedule 1.

[Kathleen21]

Thank you for your answer. I'm unable to type the information directly into forms mode. Any suggestions as to how I can enter these data? Or what else I can do to make sure I can claim the deduction? 

[JulieS]

To enter this information in Forms mode without creating errors or overrides:

1. Select the Forms icon in the upper right corner of the screen. 
2. Click on Open Form toward the upper left corner (red arrow).
3. Type the word "Misc" in the pop up box (purple arrow).
4. Highlight Misc itemized deduction wks (yellow arrow).
5. Click Open form at the bottom of the pop up box.
6. Enter your information in the Federal Estate Tax Smart Worksheet (green arrow).
7. To return to the interview, click on Step-by-Step in the upper right corner. 

[Anonymous_]

The problem here is that @Kathleen21 apparently cannot use Forms Mode. 

As a result, the deduction can be entered in Step-by-Step using the K-1 method (i.e., enter the deduction as if a K-1 had been received).

The deduction will either appear on Line 11A or 11B. The figure on Line 11A will wind up on Line 24k of Schedule 1. The figure on Line 11B needs to entered as explained in the guidance below.