Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
Wisconsin-Ken
New Member

Need help determining if this is a final tax return.

This is a small estate that will use all funds to pay medical bills and have nothing left for beneficiaries.

1 Reply
GeoffreyG
New Member

Need help determining if this is a final tax return.

If the estate in question will not have more than $600 in income for next year (which is coincidentally the same dollar amount, $600, as its annual automatic exemption), and you are reasonably sure of that fact, then you may safely mark the Form 1041 as a final-year return.

However, if the estate will have more than $600 in income, and a commensurate amount of lawful deductions for medical expenses, such that it will otherwise have no tax liability . . . then a Form 1041 still will need to be filed, if for informational purposes only.  In that case, and if this situation resembles yours, then the tax return in question would not be a final-year return, and should not be denoted as such.

For much more useful information on these topics, in addition to the IRS instructions for Form 1041 itself, you may be interested in reading IRS Publication 559 (Survivors, Executors, and Administrators).  A courtesy link that this document is provided below:

https://www.irs.gov/pub/irs-pdf/p559.pdf


Thank you for asking about this.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v