Two returns

Forum|Forum|7 years ago
June 1, 2019
2 replies
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Next year I need to do a 1041 for an estate in addition to my 1040. Do I need to open a new account for that? How do I get to 1041 in turbo tax (what is it listed under)

J

jtax

Employee

To do a 1041 for and estate or trust you need to use Turbo Tax Business. Not TT Home & Business, but TT Business. Be careful though because 1041s are very different and there is much less hand-holding in the software.

TT Business is only available as PC (CD or download) software. You can buy a copy from Amazon here

https://amzn.to/31bkr2j

or directly from Turbotax here

https://turbotax.intuit.com/small-business-taxes/

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Carl11_2

Employee

To complete a 1040 Trusts & Estates tax return you must use TurboTax Business, which is different from Home & Business.

TurboTax business is not available as an online product and is not available for MACs. TurboTax Business is for the Windows operating system only. You can purchase TurboTax Business 2019 at https://turbotax.intuit.com/small-business-taxes/ though you may find it cheaper at your local authorized retailer such as Wal-Mart or Target.

If you purchase it online directly from Intuit, you will be able to download the CD installation file and install it on your windows computer "right now" if you want.

Take special note that if the trust has benificiary recipients, then you must complete the 1041 return first, before you can even start your personal 1040 tax return. THat's because the trust will issue each benificiary recipient a K-1 (if applicable) and the recient's of those K-1's will need those K-1's issued by the trust in order to complete their personal 1040 tax return.

If this is a calendar year trust, then the trust return is due to the IRS by March 15th. If late, any assessed fines and/or penalties are assessed to the legally appointed/recognized administrator of the estate or trust. The estae or trust is *NOT* the entity that pays fines and penalties. The administrator pays those fines/penalties out of their own pocket an they are *NOT* deductible on *ANY* tax return. So if applicable, don't be late. The late filing penalty is a minimum of $200 per month, and can be higher.

J

jtax

Employee

@Carl11_2 can you cite authority for the March 15 1041 deadline for CY trusts?

The 1041 instructions say April 15. Page 8 (top right) of https://www.irs.gov/pub/irs-pdf/i1041.pdf

Plus there is an automatic 5 1/2 month extension available if you file form 7004 by April 15.

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A

Anonymous_

Employee

@jtax wrote:

@Carl11_2 can you cite authority for the March 15 1041 deadline for CY trusts?

There is no authority for that filing deadline (i.e., it is simply erroneous).

The deadline was changed a few years ago for calendar year S corporation and partnership returns (to March 15th) but not for estates, trusts, or C corporations. The deadline for the latter three, calendar year, entities remains at April 15th per Section 6072.