Although the previous post is correct, here is an expanded explanation on how to file.
Step 1: Steps for the Final Personal Return (1040)
If you are filing his final personal taxes:
- Personal Info: Go to the "Personal Info" section. When asked "Do any of these apply to [Brother's Name]?", check the box that says "I am filing this return on behalf of [Name], who passed away."
- Date of Death: Enter the date he passed.
- The "In Care Of" Address: When entering the mailing address, use your address. TurboTax will format this as "John Doe [Your Name] IN CARE OF Estate of [Brother's Name]."
- Signing: When you print the return to mail it (or when prompted during e-filing), you will sign your name as: "John Doe, Administrator."
- Form 1310: If the estate is owed a refund, TurboTax will help you fill out Form 1310. Since you are the court-appointed administrator, you will check the box stating you have court certificate evidence of your appointment.
Step 2: Steps for the Estate Income Return (1041)
If the estate earned its own income after his death, you need to file a Form 1041.
- Install TurboTax Business: Purchase and install the TurboTax Business software on a PC.
- Select "Estate/Trust": Choose the option to start a "New Return" for an Estate (Form 1041).
- Enter the EIN: You cannot use your brother's Social Security Number for this return. You must use the Employer Identification Number (EIN) you obtained from the IRS for the estate. Here is a link to apply for an EIN if you don't have one.
- Income & Expenses: Enter any income earned by the estate (interest, dividends) and any deductible expenses (funeral costs are generally not deductible on 1041, but legal fees and administrator fees often are).
- Distributions (K-1): If you distributed the money to heirs this year, the software will generate Schedule K-1s. You give these to the heirs so they can report their share on their own taxes.
Again, I am sorry for your loss.
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