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munda
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Father deceased 2016. Will help mom with Return. Multiple questions below.

1. Can i still use father's TT account or create new for mom. I am getting conflicting answers?

2. Better to create new return or keep importing like he has done every year, since all the info is there? Still at same address, same bank account.

3. If importing do I switch TAXPAYER and SPOUSE names or keep same, just enter Date Of Death? I have downloaded TT 2016, but have not started it yet. 

 

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Father deceased 2016. Will help mom with Return. Multiple questions below.

Yes you can still use father's TT account. It would be better to keep importing from last year's return for this year. You can't switch taxpayer and spouse names but you don't need to. Keep them the same and enter father's date of death. 

Next year for 2017 tax return, mother will need to create a new account listing her name on the tax return. She will not be able to import from 2016. 

See  these links for the TurboTax information.
https://turbotax.intuit.com/tax-tools/tax-tips/Family/Death-in-the-Family/INF12090.html
https://ttlc.intuit.com/questions/1899441 - Can I file for someone who has died TurboTax FAQ

Here is my Recommended PROCEDURE to follow, whether using TurboTax or any other method to file:

From your question, I am going to guess that you are acting as Personal Representative (Executor) for the Decedent.  

Depending on whether or not the Decedent was married or not the answer will varies.  In this case, your mother is the surviving spouse and her name is the second on the Form 1040.
 For example in the case of the husband passing away leaving a surviving spouse - which is the most complex situation. 

EXAMPLE:

  1. A standard Form 1040 must be filed with status Married Filing Jointly for the Decedent and Spouse for the current tax year ended, with all income and deductible expenses deductible from the beginning of the year up to the date of death ["DoD"] plus for the period from DoD to end of year only that income attributable to the surviving spouse and those expenses.   You must indicate in the interview that this return is for someone who died in in the current tax year just ended and enter the DoD.

  2. In that Form 1040, it gets more complex if any of Form 1099-DIV/INT/B were received for the respective type of income.  You must segregate the income reported on these Forms into that attributable up to DoD and that attributable to the remainder of the year after DoD.

  3. In order to avoid IRS questions about the Form 1040 Schedules B or D, it is advisable to report fully the total amounts shown on the Forms 1099 and then sub-total the respective types of income reported, and from that sub-total show on another line as an offset a deduction attributable to the reporting of the income on a Form 1041 that will be needed for the period of DoD to end of year.

    Thus, you will generate a Form 1040 for the period of the year during which the individual was alive.

    So in TurboTax, start with the Personal Interview.  
    a)  Still retain the MFJ status  - Image #1
    b) on the 3rd screen describing your father's personal data, indicate that he 
            "Passed away before filing this Return." and enter the Date of Death
    c)  If asked for your mother, indicate "Widowed" - see image #2



  4. Then, using the Business product [not to be confused with Home&Business], you will generate a Form 1041 Fiduciary Return [and possibly a required state form as well] for the ESTATE of the Decedent covering the period from Dod to either the end of current tax year or to the date that Form 706 was filed or the Estate dissolved by distribution of assets - which ever is the earlier date.  If the DoD was November, it is highly unlikely that the Estate would have been dissolved in current tax year, and may not even be dissolved next year.

  5. The Form 1041 for the Estate must report all income that was received by the Decedent's Estate - that is, income, or expense, that was reported for the period subsequent to Dod up to the end of the year.  Please note that if income from the Estate was distributed to Beneficiaries, then you will be able to reduce the reportable income by that Distributed Net Income.  Similarly, Estate expenses will reduce the Income Tax on the Estate.

  6. If under the terms of the Estate, income is distributed to beneficiaries, that is shown as a deduction on the Form 1041, and the beneficiaries receive in the process generated Schedules K-1 for then reporting the distributed income on their own Form 1040.

  7. Until the Estate is dissolved, Forms 1041 for each year must be filed.

  8. Depending on the then-relevant Estate Tax law, an Estate Tax Form 706 may be required if the Decedent's total assets exceeded $5.45 million.

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1 Reply

Father deceased 2016. Will help mom with Return. Multiple questions below.

Yes you can still use father's TT account. It would be better to keep importing from last year's return for this year. You can't switch taxpayer and spouse names but you don't need to. Keep them the same and enter father's date of death. 

Next year for 2017 tax return, mother will need to create a new account listing her name on the tax return. She will not be able to import from 2016. 

See  these links for the TurboTax information.
https://turbotax.intuit.com/tax-tools/tax-tips/Family/Death-in-the-Family/INF12090.html
https://ttlc.intuit.com/questions/1899441 - Can I file for someone who has died TurboTax FAQ

Here is my Recommended PROCEDURE to follow, whether using TurboTax or any other method to file:

From your question, I am going to guess that you are acting as Personal Representative (Executor) for the Decedent.  

Depending on whether or not the Decedent was married or not the answer will varies.  In this case, your mother is the surviving spouse and her name is the second on the Form 1040.
 For example in the case of the husband passing away leaving a surviving spouse - which is the most complex situation. 

EXAMPLE:

  1. A standard Form 1040 must be filed with status Married Filing Jointly for the Decedent and Spouse for the current tax year ended, with all income and deductible expenses deductible from the beginning of the year up to the date of death ["DoD"] plus for the period from DoD to end of year only that income attributable to the surviving spouse and those expenses.   You must indicate in the interview that this return is for someone who died in in the current tax year just ended and enter the DoD.

  2. In that Form 1040, it gets more complex if any of Form 1099-DIV/INT/B were received for the respective type of income.  You must segregate the income reported on these Forms into that attributable up to DoD and that attributable to the remainder of the year after DoD.

  3. In order to avoid IRS questions about the Form 1040 Schedules B or D, it is advisable to report fully the total amounts shown on the Forms 1099 and then sub-total the respective types of income reported, and from that sub-total show on another line as an offset a deduction attributable to the reporting of the income on a Form 1041 that will be needed for the period of DoD to end of year.

    Thus, you will generate a Form 1040 for the period of the year during which the individual was alive.

    So in TurboTax, start with the Personal Interview.  
    a)  Still retain the MFJ status  - Image #1
    b) on the 3rd screen describing your father's personal data, indicate that he 
            "Passed away before filing this Return." and enter the Date of Death
    c)  If asked for your mother, indicate "Widowed" - see image #2



  4. Then, using the Business product [not to be confused with Home&Business], you will generate a Form 1041 Fiduciary Return [and possibly a required state form as well] for the ESTATE of the Decedent covering the period from Dod to either the end of current tax year or to the date that Form 706 was filed or the Estate dissolved by distribution of assets - which ever is the earlier date.  If the DoD was November, it is highly unlikely that the Estate would have been dissolved in current tax year, and may not even be dissolved next year.

  5. The Form 1041 for the Estate must report all income that was received by the Decedent's Estate - that is, income, or expense, that was reported for the period subsequent to Dod up to the end of the year.  Please note that if income from the Estate was distributed to Beneficiaries, then you will be able to reduce the reportable income by that Distributed Net Income.  Similarly, Estate expenses will reduce the Income Tax on the Estate.

  6. If under the terms of the Estate, income is distributed to beneficiaries, that is shown as a deduction on the Form 1041, and the beneficiaries receive in the process generated Schedules K-1 for then reporting the distributed income on their own Form 1040.

  7. Until the Estate is dissolved, Forms 1041 for each year must be filed.

  8. Depending on the then-relevant Estate Tax law, an Estate Tax Form 706 may be required if the Decedent's total assets exceeded $5.45 million.
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