1041 tax form - where to list deductible administrative expenses for estate?

You're on the right track! Line 15a "Other deductions" on Form 1041 is indeed where you'd list the administrative expenses for the estate. When it says "attach schedule," it doesn't mean a specific pre-made IRS schedule - you just need to create your own attachment listing the expenses. Create a simple statement that says "Administrative Expenses" and then itemize the court fees, publication costs, postage, etc. with their amounts. Total them at the bottom and enter that total on line 15a. Make sure to label this attachment as "Statement 1 - Administrative Expenses" (or similar) and write "See Statement 1" on line 15a. For the record, funeral expenses aren't technically deductible on Form 1041, but they are deductible on Form 706 (estate tax return) if you had to file one (which you don't if the estate is this small). Since you're being reimbursed for funeral expenses as the personal representative, that's a distribution from the estate to you - not a deduction on the 1041.

I went through something similar last year and spent hours trying to figure this out! I used https://taxr.ai to analyze my 1041 before submitting it and it saved me from making a mistake. Basically, you need to create your own attachment for line 15a like the other person said, but taxr.ai also pointed out I needed to use Schedule K to report certain expenses that flowed through to beneficiaries. The site lets you upload your draft 1041 and it highlights potential issues. For my estate's admin expenses, it confirmed I was putting everything in the right place and helped me word my attachment correctly.

I didn't believe taxr.ai would be helpful for my complicated estate situation, but I was desperate after getting that huge quote from the CPA. I uploaded my draft 1041 with all my questions about the business interests and administrative expenses, and it was incredibly detailed in its analysis. It caught that I had put some expenses in the wrong category and showed me exactly where deductions for court costs, bond fees, and legal notices should go (created a schedule for line 15a like others mentioned). The business ownership portion was handled correctly too - it identified the pass-through income reporting requirements and explained how to document them. Definitely worth trying before paying thousands to a professional. I ended up filing confidently on my own and it was accepted without any issues.

If you're struggling to get answers from the IRS about your 1041 administrative expense questions, I highly recommend using https://claimyr.com to get through to an actual IRS agent. I spent 4 days trying to call about a similar estate tax question and kept getting disconnected after waiting on hold for 2+ hours. Claimyr got me connected to a real IRS agent in about 30 minutes. There's a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. The agent confirmed exactly what I needed to do for listing admin expenses on a separate schedule and attaching it to the 1041.

I have to apologize and eat my words. After calling the IRS unsuccessfully for nearly a week about my brother's estate tax situation, I tried Claimyr out of pure frustration. I got connected to an IRS representative in about 45 minutes without having to do anything - my phone just rang when they were reaching an agent. The rep confirmed that administrative expenses should be itemized on a separate statement and attached to the 1041 with the total on line 15a. She also explained that I should title it "Statement 1: Administrative Expenses Not Deducted Elsewhere" to be extra clear. This saved me so much confusion and potentially an amended return later.

Don't forget about Schedule G for the 1041! It's not commonly used, but in some cases administrative expenses can be split between Schedule G and your own statement for line 15a. Depends on if you're doing a 645 election and what kind of expenses you have.

Has anyone used the 1041 e-file through TurboTax or H&R Block? I tried H&R Block and it wouldn't let me add a custom schedule for admin expenses.

For your situation, you're definitely on the right track with line 15a. Since this is a simple estate with minimal assets, here's what I'd recommend: Create a simple attachment titled "Statement 1 - Administrative Expenses" and list each deductible expense: - Court filing fees: $XXX - Required legal publication costs: $XXX - Postage for required notices: $XXX - Any other probate-related costs: $XXX Total: $XXX Enter the total on line 15a and write "See Statement 1" next to it. One important note: with only $6,500 in assets and $692 in cancellation of debt income, your total estate income is $7,192. If your administrative expenses exceed this amount, you'll have a loss that can potentially be passed through to beneficiaries on their final K-1. This could actually be beneficial tax-wise. Also, double-check that you're not missing any other income sources (like interest earned on estate accounts, even if minimal). The IRS gets copies of all 1099s issued to the estate's tax ID number, so make sure everything matches up. Keep detailed records of all administrative expenses with receipts - the IRS sometimes questions these deductions during audits of estate returns.

I just want to add that you should be careful about which administrative expenses are actually deductible on the 1041 versus which ones might be deductible on the estate's final Form 706 (if applicable) or on your personal return. For the 1041, you can definitely deduct expenses that are necessary for the administration of the estate and the collection of assets, like court fees, publication costs, and postage for required notices. However, some expenses like appraisal fees might need to be allocated between the estate return and your personal return depending on their purpose. Since you mentioned this is a small estate, you probably won't need to file Form 706 (estate tax return), but it's worth noting that funeral expenses would be deductible there if you did have to file one. Also, make sure you're not double-deducting anything. If you claim administrative expenses on the 1041, you generally can't also claim them as miscellaneous deductions on your personal return. Given the small size of this estate and the fact that you're doing the work yourself, the approach others have outlined with creating your own schedule for line 15a should work perfectly.