file amended return with 1041 K-1 beneficiary?

[millgarten]

Hi,

My wife's mom, who lived in SC, passed away in September 2022.  Her estate was settled in 2023 and we received some tax forms related to that, and accounted for those forms when we filed our 2023 taxes.  This year we filed both our federal and (NC) state taxes early, at the end of March, using TurboTax Premium online. 

A few days ago, my wife received a PDF from the accountant who did the trust/estate tax filing.  The PDF contained a "Schedule K-1 (Form 1041) Beneficiaries Share of Income, Deductions, Credits, etc" , and a SC1041/K-1 form. Both were for the time period September 1st 2022 to August 31st 2023.

For the federal K-1, "Final K-1" and "Domestic beneficiary" were checked, box 11 (Deductions) had amounts for codes A, B and D which totaled ~8500, and all other fields were either blank or 0. A second page had Supplemental Information explaining that "11 B" was probate costs.

For the state K-1, under row 11 "Final year deductions", it listed the box 11 federal amt in field 11-A, then 11-C had 500 as "not allocated or apportioned to SC", leaving 8K "apportioned to SC" in 11-D.

My questions:

1. Should I file this as an amended return? I'm guessing yes.
2. I attempted to start an amended return online using TurboTax Premium. But I could not figure out how to add K-1's. If I use TurboTax, would I have to buy another product?

Thx,
Wayne

[SusanY1 · Accepted solution]

TurboTax premium will allow entry of the K-1 and the losses shown on the form should improve your tax situation.  If it turns out that they do not, you aren't required to file the return.  

Once you've started the amendment process in TurboTax (see more HERE) you will navigate to Wages & Income and then "S-corps, Partnerships, and Trusts".  The K-1 for an estate is the same as a Trust, so you will enter the information in this area.  

[millgarten]

Thanks so much Susan!  This resulted in a (total of federal & state) refund of almost 20% of what I paid out in the original return!

Wayne