Estate Form 1041 - Fiscal Year

[DMaxTennis]

I would like to file a 1041 for an estate with a Fiscal year from March 2023 to March 2024 so that this can be both a first and a last 1041 for this estate. I have read through some of the posts of this subject, and it would seem that TurboTax Business 2023 can and should be used for this filing. First of all, is that correct? Also, when using TurboTax Business 2023, it is does not allow me to provide fiscal year dates that are not in 2023. Is there a way around this?

[ScruffyCurmudgeon]

@DMaxTennis 
Start a NEW ESTATE RETURN

In answer to "Is this the Estate's Final Return?" Click No  and Continue

Now before anything else, go to Forms Mode by clicking in the upper right of the top menu "Forms"

Now in Forms Mode, in the left-hand navigation list of forms, click "Information Worksheet"

On the Worksheet , Click Fiscal Year and insert 3 for Ending month, note that you either already have supplied the Identifying Information or if not, and slots are showing missing and you will enter that after completing this step.

Now look at the incomplete Form 1041 (no worries, example uses last year)

Note that the dates are a 12-month Fiscal Year starting on March 1 (disregard the "23" - example only)

Now Click Step-by-Step and proceed

[dmertz]

2023 TurboTax Business is the correct product to use for filing a Form 1041 for an estate with an fiscal tax year that begins in 2023.  It does allow you to specify fiscal year beginning and ending dates.

IRS Pub 559 says, "The estate's first tax year can be any period that ends on the last day of a month and doesn't exceed 12 months."  March 2023 to March 2024 would be more than 12 months.  Perhaps you could make the fiscal year April 1, 2023 to March 31, 2024 or March 2023 to February 29, 2024.

[ScruffyCurmudgeon]

As I indicated in my answer " (no worries, example uses last year)" " (disregard the "23" - example only)"

Lacking  the 2023 Business Product, the answer in step-by-step uses the 2022.

@Anonymous_ @DMaxTennis 

@Raph @SuziM  Well, if you would, provide the 2023 so this issue will not bring concern going forward

[ScruffyCurmudgeon]

@dmertz 
Seems as if every one is missing the parenthetical that clearly says this is an example only and to ignore the fact that because 2022 product was used, of course the ending date is not what you would think if you miss the notes
@SuziM 

[dmertz]

@ScruffyCurmudgeon , nobody here was commenting on your post and nothing others posted disagrees with what you posted.  The replies were nearly simultaneous and entirely independent of what you posted.

[ScruffyCurmudgeon]

Which proves that the supposed notification alert that was promoted last year of informing that someone was already responding to a post is in fact dysfunctional like most of the new Community (a bulletin board where you cannot even sort the entries by date!)

[DMaxTennis]

@ScruffyCurmudgeon Thank you. Understanding that your example screen shots were using the 2022 product, but applicable to using the 2023 product for my question, I was able to enter an Ending Date in 2024. Given the requirements of Ending Dates being the end of a month, I probably ultimately will select options of this being both an initial and final return with a short year beginning in March 2023 and ending the end of February 2024.

One thing I did notice doing this though is that TurboTax entered the 28th for February's end date, while this year it's the 29th and you can't override without TT flagging this as an error. This appears to be a bug in this year's software.

[ScruffyCurmudgeon]

I'm glad that the suggestion of using Forms mode to set a FY filing works for you and indeed, if you start on 3/1/2023, the FY must end on the end of February, 2025. 

I'm forwarding the error you pointed out that TurboTax does not recognize 2024 as a leap year.

@SuziM