Can I use 2021 TurboTax to prepare Federal and State tax returns for a loved one who was deceased in October 2020? A late 1099-R arrived in 2021 after submitting 2020.

[anaretti1-gmail-]

A 1099-R arrived in March 2021. I am trying to prepare my loved one's tax statement for 2021.  I already prepared his 2020 statements, in which all but the late 1099-R was included.
Turbo Tax 2021 did not allow me to enter the real date of passing (2020).  It required a date in 2021.  This also led to my having to answer the question about the 3rd stimulus check in 2021 as No (i.e. not received), which then calculated a $1400 credit, which is wrong, since the date of passing was in 2020.  Do I have to prepare my tax statement for my loved one manually instead of using TurboTax?

[DianeW777]

No.  The final return of the decedent must be completed in the year of death or 2020 in your case.  I am sorry for your loss.

You can use TurboTax 2020 to prepare an amended tax return.  If you already have an account for your loved one for 2020 you can simply amend that return.  If not you can use the link here to prepare a 2020 tax return and then amendment. It requires the purchase of the CD/Download version of TurboTax.

• How do I prepare a 2020 return?  
  • The late Form 1099-R that arrived in March, 2021 must be added to the 2020 tax return.

If you would like to use paper returns and prepare the amended return yourself you can print Form 1040-X and instructions. Include a copy of the Form 1099-R when you mail the return and any other form if there is federal withholding from the original return.

Please update here if you have more questions.

[anaretti1-gmail-]

Thank you for your reply. 
What about the New York State IT-201?  

[ThomasM125]

You can amend the New York form IT-201 in TurboTax as well as the federal return. You will be instructed to amend it after you complete your adjustments in the federal return.

[anaretti1-gmail-]

Thank you.  It seems that Turbo Tax automatically generated the IT-201-X.  It did not prompt me to do anything.  When I proceeded to try to file the two amended statements (Federal and NY), the IT-201-X was there.  It showed no tax owed, so I hope the software did actually go through whatever steps it was supposed to do even though it did not prompt me at all.

I tried to e-file both the Federal and state amended forms, but could not, as it did not accept a Signature date of 04/06/2022.  (It needed to be a 2021 date.  )
I believe I have to print both forms and mail both the 1040-X and IT-201-X forms in rather than e-file - even though Turbo Tax has a screen that states that New York requires e-filing.

Am I correct in thinking that both must be mailed in (not e-filed)?  Thanks again.

[AmyC]

You will need to mail both the federal and state since they are prior year returns. Mail them with tracking to protect the information and to verify that it was received.

[anaretti1-gmail-]

Thanks, Amy.  I am confused by one thing, though.  I did not appear to transmit either the Federal or state electronically (since the date could not be accepted).  However, in the "all official forms" that I printed off, the last page is entitled "Electronic Postmark - Certification of Electronic Filing" and it has a fiel, "Federal Return Submitted:  April 17, 2021 04:06 pm pdt" with the same date listed after the "Federal Return Acceptance Date" field.  I did not receive an email that indicates I was successful in transmitting either form, so why did I get this?  I'm concerned that if I mail in the Federal, it may appear as a duplicate submission (i.e. first one via e-file).

Or, is this possibly a bug in the software and this page should be disregarded?

[anaretti1-gmail-]

This post has to do with my last post regarding the "Electronic Postmark - Certification of Electronic Filing" that appeared on a saved form.  In that pdf file, the instruction sheet stated that a 1040-V voucher should be sent to Internal Revenue Service, P.O. Box 931000, Louisville, KY [removed].
However, when I went through the TurboTax filing steps and chose to mail in rather than e-file, it did not generate a 1040-V voucher and stated the check should be sent to Department of the Treasury , Internal Revenue Service, Kansas City, MO [removed]

Which address should the amended return and my check be went to?  (Also, should I use the 1040-V that was generated only when TurboTax thought I was e-filing, even though my official forms generated when I chose the mail-in option (after encountering the issue whereby the Signature Date in 2022 was not accepted and the transmit electronically seemed to be prevented because of that) did not generate a 1040-V? 

I think there is a bug in the software for any of the above to have occurred.  If 2022 signature date is not allowed for a 2020 amended return, no forms should have been generated for electronic filing.  This leaves the user very confused as to whether it actually went through or not and where to send their return and payment.

Please let me know where I should send the return and check to and whether I should include the 1040-V that lists "Internal Revenue Service, PO Box 931000, Louisville, KY [removed]" on it (because it was generated by what TurboTax thought was a successful e-filing).

[anaretti1-gmail-]

Also  ... the "Electronic Filing Instructions for your 2020 Federal Amended Tax Return" pdf even stated 

Your return shows you have elected to pay your balance due of
$xxxx.00 by Direct Debit using the following information:
- Amount Withdrawn: $xxxx.00

If TurboTax tries to direct debit from my loved one's old account, it will fail, as that account was closed a year ago.  (He used that method, but I paid by check when I filed his original Form 1040 in 2021. )

I don't even know if my check will be considered a duplicate payment ... very confusing.  I don't know what to do.  

[anaretti1-gmail-]

One more update, as I just saw the following as I started reviewing my New York State tax forms generated.

TurboTax is indicating that I also e-filed the NYS amended tax return.  The cover sheet for the 201-X states, "Do not mail a paper copy of your tax return. Since you filed electronically, the New York State Department of Taxation and Finance already has your return. ".  Also, beside the "What You Need to Sign", it states:  "Sign and date E-File Signature Authorization within 1 day of acceptance. A trustee must sign on behalf of a deceased taxpayer. "

As mentioned for the Federal Form 1040-X, I never received a success message after clicking on Transmit Forms because it seemed to be stopped by my entry of a 2022 Signature Date (a 2021 date was required, even though I am submitting the amendment in 2022).

I never received any emails indicating that either my Federal or State amendments were successfully transmitted.  I don't know if they were or not, based on the statements about e-filing found in the Filing Instructions in my saved pdf files.

Help!  Thank you.

[SForrestLO]

You may want to contact an expert for assistance. Below are two options for you.

What is TurboTax Live?
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-turbotax-live/00/27191

In TurboTax Live with Full Service, a dedicated tax expert will prepare, sign, file, and guarantee your tax return for you.

This FAQ will provide more information. 
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-full-service-by-turbotax-live/00/2...

@anaretti1-gmail-