- Buyer's Guide - If you need to file a Trust, Estate, or Nonprofit return
Buyer's Guide - If you need to file a Trust, Estate, or Nonprofit return
Do you need to file a trust return (Form 1041)?
Form 1041 must be filed for many trusts. If you're the trustee or administrator of a trust, you'll need to prepare and file Form 1041 and the associated Schedule K-1 forms for each of the trust's beneficiaries. Each beneficiary will need a Schedule K-1 for use in preparing his own Form 1040.
TurboTax Business is the product you'll need to prepare your trust's Form 1041. Our step-by-step interview will walk you through filling out Form 1041 and will automatically generate the beneficiaries' K-1 forms for you.
TurboTax Business
Corporations, Partnerships, & LLCs
$109.95 FederalState additional
Efile included
Is the trust you own a "living trust?"
You don't need to file Form 1041 for a "living trust." All of the income your trust earns and any related deductions are just reported on your personal income tax return (Form 1040). If this is the case for you, simply purchase the TurboTax Desktop or Online product that best fits your personal financial situation; you don't need TurboTax Business.
If you do have to file a trust return, which product should you use for your personal income tax return?
You'll need TurboTax Desktop or TurboTax Online to prepare your Form 1040; TurboTax Business doesn't include Form 1040. You will first prepare your trust's Form 1041 using TurboTax Business. Then you will use your Schedule K-1 prepared by TurboTax Business to do your personal taxes.
You should use either TurboTax Deluxe or TurboTax Premier. Either product will guide you through entry of the Schedule K-1 from your trust and will ensure that all trust income and deductions are reported in the right places on your Form 1040.
Not sure which to choose? Let's take a look at your personal tax situation to help you decide.
Do you need to file an estate income tax return (Form 1041)?
Estate income tax returns must be filed for any estate that still retains income-earning assets as of the end of the year. Most estates distribute the decedent's assets shortly after death; some, however, retain ownership of those assets (stocks, rental properties, etc.) for some time afterward. The income earned from those assets is income that the estate itself must report on an estate income tax return. Such a return is filed using Form 1041 (the same form as trusts use).
TurboTax Business is the product you'll need to prepare the estate's Form 1041. Our step-by-step interview will walk you through filling out Form 1041 and will automatically generate any beneficiaries' K-1 forms for you. K-1 forms will be generated usually only when the income-earning assets have been distributed to the heirs. TurboTax Business will help you determine how much net income (income less applicable deductions) should be allocated on Schedule K-1 to the estate's beneficiaries.
TurboTax Business
Corporations, Partnerships, & LLCs
$109.95 FederalState additional
Efile included
What about your personal income tax return?
You'll need TurboTax Desktop or TurboTax Online to prepare your Form 1040; TurboTax Business doesn't include Form 1040. If the estate you're preparing distributed its assets during 2008, you'll receive a Schedule K-1 and must include the income and deductions from that Schedule K-1 on your personal return.
You should use either TurboTax Deluxe or TurboTax Premier. Either product will guide you through entry of the Schedule K-1 from the estate and will ensure that all estate income and deductions are reported in the right places on your Form 1040.
Not sure which to choose? Let's take a look at your personal tax situation to help you decide.
What if you need to file an estate tax return?
Note that an estate INCOME tax return is different than an "estate tax return" which is filed using Form 706. Estate tax returns are filed for estates with property worth over $2,000,000 on the date of the owner's death and basically state all assets owned and debts owed by the decedent at that point. If the value of the estate is over certain thresholds, estate taxes are owed. If the estate you're dealing with had property of less than $2,000,000, an estate return is probably not required.
TurboTax doesn't include Form 706. However, Intuit does sell software to prepare Form 706 for use by tax professionals. If you're interested in this software, visit our ProSeries Web site at http://www.proseries.com/products/professional/federal/706features.aspx to determine if this product will work for you.
Do you need to file a tax return for a nonprofit organization?
TurboTax does not include the forms that nonprofit organizations need to file their annual report. However, Intuit's ProSeries product line does include the Form 990 program. This product includes the tax forms most commonly used by nonprofit organizations, including Form 990, Form 990EZ, Form 990-PF, and Form 990-T.
The ProSeries 990 program transfers your nonprofit organization's information from QuickBooks as well. Take a look at our ProSeries Form 990 product at http://www.proseries.com/products/professional/federal/990features.aspx.
Do you need to file a gift tax return?
TurboTax does not include Form 709, Gift Tax Return, which is required to be filed anytime you, the giver, gift more than the annual gift-tax-free amount ($12,000) to someone in a given year. However, Intuit's ProSeries product line does include the Form 709 program.
Take a look at our ProSeries Form 709 product at http://www.proseries.com/products/professional/federal/709features.aspx
The program provides worksheets to fill in information about the gifts you gave during the year.
