Filing a Deceased Tax Return with TurboTax: A Step-by-Step Guide
Losing a loved one can be a difficult and overwhelming experience. In addition to the emotional toll, there are often many practical tasks that need to be completed, including filing their final tax return. Filing a deceased tax return can be a complex and intimidating process, but with the right guidance, it can be made easier. In this article, we will walk you through the process of filing a deceased tax return with TurboTax.
Who Needs to File a Deceased Tax Return?
Before we dive into the process, it’s essential to understand who needs to file a deceased tax return. If the deceased person had income in the year they passed away, or if they owed taxes or were due a refund, their estate will need to file a tax return. This includes income from wages, self-employment, investments, and other sources.
Gathering Required Documents
To file a deceased tax return, you will need to gather several documents, including:
- Death certificate: A certified copy of the death certificate will be required to prove the person’s death.
- Identification: You will need identification for the deceased person, such as a driver’s license or passport.
- Income statements: Gather all income statements, including W-2s, 1099s, and any other documents showing income earned by the deceased person.
- Expense records: Keep records of any expenses incurred by the deceased person, including medical expenses, funeral expenses, and other relevant expenses.
- Tax documents: Gather any tax-related documents, including prior year tax returns and any relevant correspondence with the IRS.
Step-by-Step Guide to Filing a Deceased Tax Return with TurboTax
Filing a deceased tax return with TurboTax is a relatively straightforward process. Here’s a step-by-step guide to help you navigate the process:
Step 1: Create a New Account
To start, you will need to create a new TurboTax account. You can do this by going to the TurboTax website and clicking on "Create an Account". Follow the prompts to create a new account, and make sure to select "Deceased" as the reason for filing.
Step 2: Choose the Correct Form
TurboTax offers several different forms for filing a deceased tax return, including Form 1040, Form 1041, and Form 706. Choose the correct form based on the deceased person’s income and assets. For example, if the deceased person had income from wages, you will need to file Form 1040. If the deceased person had income from investments, you may need to file Form 1041.
Step 3: Enter the Deceased Person’s Information
Once you have chosen the correct form, you will need to enter the deceased person’s information. This includes their name, Social Security number, and date of birth.
Step 4: Enter Income and Expenses
Next, you will need to enter the deceased person’s income and expenses. This includes income from wages, self-employment, investments, and other sources. You will also need to enter any expenses incurred by the deceased person, including medical expenses, funeral expenses, and other relevant expenses.
Step 5: Calculate the Tax Liability
TurboTax will calculate the tax liability based on the income and expenses you enter. You will need to review the calculation and make any necessary adjustments.
Step 6: E-file the Return
Once you have reviewed and verified the return, you can e-file it with the IRS. TurboTax will take care of the filing process, and you will receive an email confirmation once the return has been accepted.
Additional Tips and Considerations
Here are a few additional tips and considerations to keep in mind when filing a deceased tax return with TurboTax:
- Hire a professional: If you are not comfortable filing a deceased tax return yourself, consider hiring a professional tax preparer.
- Keep records: Keep all records and documents related to the deceased person’s income and expenses, as well as the tax return itself.
- File for an extension: If you need more time to gather information or prepare the return, you can file for an extension.
- Consult with the IRS: If you have any questions or concerns, consult with the IRS or a qualified tax professional.
Conclusion
Filing a deceased tax return with TurboTax is a relatively straightforward process, but it can be overwhelming without the right guidance. By following the step-by-step guide outlined above, you can ensure that the return is filed accurately and on time. Remember to gather all required documents, choose the correct form, and consult with a professional if needed. With TurboTax, you can rest assured that the process will be smooth and stress-free.