Where can I enter my IRD in TurboTax Deluxe 2021?

[PattiF]

Income that is considered as IRD or Income in Respect of a Decedent should be reported only on an Estate Tax return or on the beneficiary's return. 

See page 10 in this link for more information: Survivors, Executors & Beneficiaries.

[hughgs]

I agree. Since I'm the beneficiary then this applies to me and doesn't answer the question.

[DawnC]

It depends on the type of income it is.   The character of the income you receive in respect of a decedent remains the same as it would have been to the decedent if he or she were alive.  If the income would have been a capital gain to the decedent, it will be a capital gain to you.  So, where you enter it depends on the type and or character of the income you received on behalf of the decedent.

Income in respect of a decedent must be included in the income of one of the following.

• The decedent's estate, if the estate receives it.

• The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.

• Any person to whom the estate properly distributes the right to receive it.

If you have to include income in respect of a decedent in your gross income and an estate tax return (Form 706) was filed for the decedent, you may be able to claim a deduction for the estate tax paid on that income.  

[hughgs]

Thank you, I should've been more clear. I'm trying to enter my IRD for my personal return. I've been able to enter the IRD in previous years, but I cannot find the option in the 2021 version. For example, in the 2020 version I used the "Estate tax deduction not reported on an estate K-1" in the "Other Deductible Expenses" section to enter my IRD. However, that option doesn't seem to be available. Sorry for not being clearer.

[HelenC12]

An income tax deduction is allowed to the recipient for the estate tax paid on the income. The deduction for estate tax paid can only be claimed for the same tax year in which the income in respect of a decedent must be included in the recipient's income. Per IRS Pub 559, page 12.

• Individuals can claim this deduction only as an itemized deduction on line 16, Other Itemized Deductions of Schedule A (Form 1040).

To enter your estate tax deduction not reported on a estate K-1:

1. Log on to TurboTax.
2. Select Federal from the left side navigation.
3. Select Deductions & Credits on the top tab.
4. Scroll down to Other Deductions and Credits, Show more and scroll down to Other Deductible Expenses, the Start/Revisit.
5. Continue and on the Did you have any of these less common expenses? screen, select No.
6. On the Tell us about your less common expenses screen, select Continue. Do not complete the screen.
7. On the Did you have any of these other expenses? screen, you'll see Estate tax deduction not reported on an estate K-1. Select Yes.
8. On the Tell us about your other expenses screen, enter an amount in Estate tax deduction not reported on an estate K-1.
9. Continue with the onscreen interview until complete.

[hughgs]

I'm not using the on-line version. Your steps are how I found the information in TurboTax Deluxe 2020, but I don't see the K-1 option in the 2021 version.

[HelenC12]

@hughgs 

To enter the Estate tax deduction not reported on an estate K-1 using the TurboTax Deluxe CD\Download 2021 version:

1. Log on to TurboTax.
2. Select Federal Taxes from the top main tab.
3. Select Deductions & Credits under the Federal Taxes tab. 
4. On the How do you want to enter your deductions and credits? screen, select I'll choose what I work on.
5. On the Your 2021 Deductions & Credits screen, Scroll down to Other Deductions and Credits, Show more and scroll down to Other Deductible Expenses, then Start/Update.
6. On the Did you pay any generation skipping taxes in 2021? screen, select No.
7. On the Did you have any of these less common expenses? screen, select No.
8. On the Did you have any of these other expenses? screen, you'll see Estate tax deduction not reported on an estate K-1. Select Yes.
9. On the Tell us about your other expenses screen, enter an amount in Estate tax deduction not reported on an estate K-1.
10. Continue with the onscreen interview until complete.

[Edited 03/14/22|8:19 am PST]

[hughgs]

That worked on the 2020 version, but I don't get the last screen on my 2021 version.

[DianeW777]

An income tax deduction is allowed to the recipient for the estate tax paid on the income. The deduction for estate tax paid can only be claimed for the same tax year in which the income in respect of a decedent must be included in the recipient's income. Per IRS Pub 559, page 12. (As provided by our awesome Tax Expert @HelenC12).

The estate tax deduction is entered in TurboTax Online using the following steps:

1. Other Deductions & Credits > Other Deductible Expenses > Select Start or Revisit
2. On the screen 'Did you pay any generation-skipping taxes in 2021?' select  No
3. On the screen 'Did you have any of these less common expenses?' select No
4. On the screen 'Did you have any of these other expenses?' select Yes
5. Enter the Estate tax deduction not reported on an estate K-1 (see image below)

[WilliamK]

I agree with Hugh.  The TurboTax 2021 premier downloaded version simply does not work as described above.  There is no opportunity to enter the IRD deduction.  All the steps above do not work.  Failure occurs at the point where one clicks 'no' in answer to 'do you have any of these less common expenses'.  That is the end of the road.  There is no mention of IRD not entered on a K-1.

[JamesG1]

In TurboTax Desktop Premier version, follow these steps.

• Federal Taxes
• Deductions & Credits
• I'll choose what I work on
• Other Deductions and Credits
• Other Deductible Expenses
• Did you pay any generation-skipping taxes in 2021?  No
• Do you have any of these less common expenses?  No
• Do you have any of these other expenses?  Yes
• At the screen Tell us about your other expenses, Estate tax deduction not reported on an estate K-1 is listed.

[KLnEH]

The above examples do not work for 2022 Home and Business.  Where do I enter my IRD?

[Anonymous_]

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@KLnEH wrote:

The above examples do not work for 2022 Home and Business.  Where do I enter my IRD?

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See Re: IRD entry in 2022 Home and Business. (intuit.com)

The examples will not work for you if you are trying to enter Income in Respect of a Decedent (IRD) on your individual income tax return (1040).

Most of the examples (and steps) relate to a deduction for federal estate tax paid on income in respect of a decedent (which would wind up on Line 16 of Schedule A, if the taxpayer itemizes deductions).

@KLnEH