Estate tax using Turbo Tax Business

[Sorsmo]

I am the fiduciary on my mothers estate.  I am filling for 2021 and using TurboTax Business 1041.  The Federal taxes seemed straight forward, however, I live in Illinois (this is where I have the estate address).  My mother is from Minnesota and has income from Minnesota (1099 R only <$19K) and Pennsylvania (Royalties on oil leases <$800).  Only 2 states showed up in TurboTax Business (1 for Illinois and 1 for Penn., nothing for Minnesota).  Going through the state taxes, its not clear if I have to file any other forms for each state.  Illinois says I owe ~$500 in taxes which seem odd for the little income that was received in Minnesota.  Penn. does not show any taxes required.  Question:

1. Should I have to file a MN return if the decedent was from MN and I as the fiduciary live in IL where I set up the estate accounts? 

2. Should I even have to file an Illinois return since all of the income was actually earned in MN?  Does owing $500 to Illinois in state tax even make sense when total income was less than $20K?

3. Do I have to complete other forms for each state when the income is only that listed above?

Thanks

[Anonymous_ · Accepted solution]

I am sorry for your loss.

With respect to Illinois, the estate most likely does not have a filing requirement. Your mother appears to have had no connection with Illinois and did not pass away in the state. 

With respect to Pennsylvania, you need to check the PA DOR web site since it appears as if there was Pennsylvania source income.

See https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Estates-Trusts-Decede...

As for Minnesota, there most likely is a filing requirement since it appears your mother was a resident and passed away in that state. 

See https://www.revenue.state.mn.us/filing-requirements-estates-and-trusts

Again, there should be nothing owed to the State of Illinois as a result of income that accrued to the estate.

[Sorsmo]

Hi, thanks for the reply.  I was thinking the same as you but TurboTax auto selected Illinois and PA (and then I had to pay to download them) and when I try to down load Minnesota it is not in the list of available states for Estates and Trusts.   Any recommendations on who to reach out to on the Minnesota state form / TurboTax?

Thank you in advance.

[Anonymous_]

Unfortunately, Minnesota Fiduciary is not supported by TurboTax Business.

See https://ttlc.intuit.com/community/state-taxes/help/which-states-are-not-supported-in-turbotax-busine...

You would have to prepare the return manually, use a tax professional, or some other software.