Filing 2025 tax return for person who died in 2024, turbotax is giving an error

[s d l]

My mother in law passed away in Nov 2024, we filed her 2024 tax return in 2025. 

In Jan 2026, we received 3 2025 tax year 1099s for her:

1. 1099 DIV $1,100 from her brokerage account, was closed in 2025

2. 1099 G $1,900 CA state income tax refund

3. 1099 INT $113 from IRS for taxable overpayment interest

We would prefer to file a 2025 tax return to avoid any future issues. We are preparing her 2025 tax return, as expected it shows zero tax for Federal and State. During the turbotax review, it keeps saying date of death should NOT be before 2025.  Can we submit this tax return even with this "error"? or what should we do to fix this "error"?

[MaryK4]

The final tax return is filed in the year of death, so her final return was 2024.  Because she still had income in 2025, you would file it with her estate tax return or whomever receives the income through her will or probate can report it on their personal returns as Income in Respect of a decedent. (See Income in Respect of a Decedent)  

The recipient can add it to the tax return as Miscellaneous income in TurboTax: 

Under Less Common Income select Miscellaneous Income, 1099-A, 1099-C

1. On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income
2. On the Any Other Taxable Income? screen, select Yes
3. On the Other Taxable Income screen enter the description "IRD for Name last four SSN," then the amount.  Select Continue
4. On the Other Miscellaneous Income Summary screen, select Done

[s d l]

@MaryK4 

thanks for the reply, do we include all 3 in her estate tax return?

1. 1099 DIV $1,100 from her brokerage account, was closed in 2025

2. 1099 G $1,900 CA state income tax refund

3. 1099 INT $113 from IRS for taxable overpayment interest

[CatinaT1]

Yes, if it was paid to her prior to her death it would be reported on her estate return. If it was paid to a decedent after her death via probate or her will, they would report it on their return as miscellaneous income like MaryK4 indicated. So it depends on when the income was received and who it was paid to.