Filing 2022 taxes for taxpayer who passed away in 2021

[garlbeth721]

My mother passed away on Dec. 23, 2021.  I filed her federal and state income taxes in 2022.  In March, 2022, she received a dividend on some stocks she owned, before these stocks had been reissued to her heirs.  That was the only income she received in 2022.  I thought I should file a 2022 return documenting this income.  Turbotax will not allow me to enter 12/23/2021 as the date of her death, insisting the date must be in 2022.

Do I need to file a 2022 tax return in order to account for the dividend ($1,300) she received in that tax year?  If so, how do I get around the problem of answering the data-of-death question?

Thanks.

[JamesG1 · Accepted solution]

If you received 2022 dividend income in your mother's name, the income is properly reported on a 2022 IRS form 1041 estate income tax return.

If there is no IRS form 1041 estate income tax return, the dividend income may be reported by the beneficiaries.  Two equal beneficiaries would each report the income and enter an adjustment to the income to reflect only your taxable portion.  (Each beneficiary may report one half.)

Follow these steps:

1. Open or continue your return, if you haven't already
2. Select Federal from the left menu, then Wages & Income
3. Scroll down to Investments and Savings and select Start or Revisit next to Dividends on 1099-DIV
4. Answer Yes on the next screen, then follow the onscreen instructions to enter the info from your 1099-DIV.
   • If you chose to type in your info, select Enter a different way on the Let's import your tax info screen, then on the next screen choose the Dividends option and Continue
5. On the screen Do any of these uncommon situations apply? check the box next to I need to adjust these dividends.
6. On the next screen, enter the Adjustment amount in the box provided
7. Select I received all or part of these dividends for someone else (I am a nominee).

@garlbeth721