Form 1041 - Estate Tax Return

[audicof]

We filed an extension on our return with an expected income of 0.  That was correct for the 2022 return.  Since income/tax owed was zero, do we still have to file an actual return?

[EleanoreS]

Good Day @audicof 

The Form 1041 filing threshold for any domestic estate is gross income of $600 or more when the beneficiary is a resident alien.  The Form 1041 filing threshold for a trust is when it has any taxable income for the year, gross income of $600 or more, or a beneficiary who is a resident alien.

Based on the facts you presented, a return would not be required unless there was a beneficiary who is a resident alien.

The instructions for Form 1041 will provide additional information.

Thank you for reaching out to the TurboTax community and have a great day!

[audicof]

That wasn’t what I asked.  I already determined we owed nothing.  I wanted to know if since we filed the extension, do we have to file the return since we don’t owe.

[audicof]

Also, the form instructions are terrible.  The definition of what is considered income on an estate is terrible.  

[EleanoreS]

Hi @audicof 

I apologize for not directly answering your question and for the IRS instructions.  I was providing additional information and resources.

To answer your question directly, no, you do not have to proceed to file a return because you filed an extension. There is a possibility the IRS may send a notice looking for the return based on the fact they receive an extension.  You can either file a return with no income/expense information or you can wait to see if a notice arrives then simply reply that you filed the extension to be safe but as it turned out, the return was not required to be filed.

Thank you again for reaching out to the TurboTax Community