Estate Income Tax Return

[2davidc8]

I need to file estate income tax return, both Fed (Form 1041 and related schedules) and California Form 541 and related schedules.  The description for TurboTax Business edition says "state preparation additional".  I'm getting the Windows PC disk.  What's the procedure for getting the additional software to file the estate income tax return for California?

[mesquitebean]

OK.  See the answer I left you below.

[ScruffyCurmudgeon]

In almost all cases, with the Form 1041 filings, some but not all of the necessary data flows from the Federal return data to the state component.  The most typical problem is that in the Federal, when reporting the sale of an asset, the recommended "date of acquisition" is "Inherited" but that is usually not accepted as a recognizable date by the state programs.  So, one must manually review the 1099-B worksheet and if the state component requires "an incorrect acquisition date" be corrected, then insert the actual date of death.

Depending on the state, I have over time found that I must go to Forms Mode for the state forms and carefully review all entries.  It is best in Forms Mode to also have open the 1041 or relevant return page.  The "review" at state level is for the most part something that you must manually handle as the software for the state 1041 equivalent filings is not complete as it is in the Federal level.

If you need more specific information, comment back here and tomorrow (today is holiday MLK Day 2019) I will run a California Form 541.

[mesquitebean]

The state module is 59.99.

You normally purchase any state module from inside the installed program.   In the top menu bar of the Business Edition you can click on the word ONLINE and in the dropdown menu choose to download state, and it will ask you which one and ask for your payment info. 

Or another way, it may prompt you at the end of the Federal interview when you move on to the State Tax section.

Or if you have trouble with those, you can also phone Support to pay and get it pushed to you.

NOTE:  You should complete all of the Federal portion before starting the State return.

[2davidc8]

Will all the necessary data flow automatically from the Federal to the State section?

[mesquitebean]

I don't have that product.  I just left you a screen image above.  In Step 2, I don't know if that means it automatically does it when you start the state program, or if you have to tell it when to do it, or if it does it concurrently if the state program is already installed.

[mesquitebean]

I also don't know if that image is correct or not in regards to the first step that you have to actually submit the Federal return first and then do the State return.   To me that doesn't make sense in case you notice something wrong with the Federal return while working on the State return.  So that may be misrepresented in that picture.   I can ask around later today.

But in terms of "preparation", you should finish preparing the Federal return first.

[2davidc8]

That makes sense.  What I'm asking is whether I should first establish the "link" between the Federal and the California returns before starting on the Federal.  Thanks for all your help!

[mesquitebean]

Sorry, but I don't know any specifics about that product.  It may not make any difference "when" to download the state program.  I've submitted a request for more info during the day.  Check back later today, or see if someone else posts in this thread later.