Estate Tax 1041 Software

[Furu]

As I am the "lucky" executor/personal representative of a family member's estate and I have the responsibility/requirement of filing the Federal 1041 estate tax form at the end of the fiscal year which just ended on 30 June.

It is a very simple estate with just over the minimum income from the estate to trigger the filing requirement and several thousand in lawyer fees and court filing charges that have to be dealt with correctly. I originally thought I could just do a manual 1041 but after going through the instructions and forms I am a little intimidated especially by the state estate tax form. I have now decided since I also have to do a 1041 schedule K-1 and a state 41 (state equivalent to federal 1041) that maybe I need a little help. The professionals are quoting me $600 since it is a simple 1041. I thought I would look at tax software packages. Turbotax Business says they can do it and H&R Block At Home Premium & Business say that they can do it.

Does anyone in the TBN group have any experience in 1041 and 1041 Schedule K-1 filings and tax software who can make a suggestion as to which they think will do a better job? I have used Turbotax for years but their Turbotax Business is nearly twice the price of H&R Block At Home Premium & Business.

 

[randy41]

i am a cpa and am familiar with preparing 1041's. your situation sounds simple as are most 1041's so it seems to me that any software that prepares 1041's should work well.
i have never used either one however so i can't really speak from first hand experience with the software. as far as state issues go, i'm only familiar with VA fiduciary taxes.

 

[woodchuckie]

Doing it yourself puts the responsibility totally on you. I'm in the fourth year of my position as executor of my mothers will. Only 1/4 of the money I have to spend is mine and there are plenty of other things to keep up with. I will always pay to have it done. I have always done my own taxes but there is no one but Uncle Sam looking over my shoulder.

 

[2manyrocks]

Either software package is probably better than having to do it manually.

If you hire a CPA to do it, then the estate pays for it, and any mess up is on the CPA.

If you DIY and there's a mess up, could end up on you. Many folks will use a CPA partly because they don't want to spend their personal time preparing the return and if the estate is paying for it, what's the cost spread among each of the beneficiaries?

Just sayin....

 

[Furu]

Thanks for your inputs, the 1041 is simple but the 41 requires some special K-1 notes that I have to be careful about. Will probably go with the software so the notes get done correctly for the state.

 

[randy41]

what state is the 41 form from?

 

[Furu]

Oregon has the fiduciary form 41, their attempt I guess to tie it to the 1041.
Of course I'm not from Oregon and that makes it just a little less convenient but that is the rule since the probate was filed there as she passed/lived there.