Has anyone used TurboTax for filing a final return for deceased taxpayers? Do they have good guidance for this situation or should I look at other software?

I'm really sorry for your loss, Dmitri. This is such a difficult situation to navigate while you're grieving. From my experience as a tax preparer, you're absolutely right that you can file married filing jointly for their final return since they were married at the time of death. Here are a few additional things to keep in mind: 1. Make sure to get a federal tax ID number (EIN) for each estate if you haven't already - you'll need these for any estate tax returns or if the estates generate income after death. 2. Check if they had any estimated tax payments due for 2024. As executor, you'll need to make those payments to avoid penalties on their final return. 3. Don't forget about state taxes - you'll likely need to file final state returns as well, and some states have different rules for deceased taxpayers. 4. If they had any joint bank accounts or investment accounts, make sure you understand which income gets reported on their final personal return versus potential estate returns. The IRS Publication 559 has detailed guidance on tax issues for survivors, decedents, and estates. It's dense reading but covers scenarios exactly like yours. You're doing the right thing by being thorough about this.

has anyone tried just reporting the box 7 amount as regular wages on their tax return? seems easier than fighting with HR for weeks...

I work in tax preparation and see this exact issue multiple times every tax season. Box 7 errors are surprisingly common, especially in larger companies with complex payroll systems. The $1,450 amount you're seeing could be from several sources that got miscoded: - Year-end bonuses or profit sharing - Overtime premium pay - Attendance bonuses - Safety incentives - Holiday pay differentials Here's what I'd recommend: First, gather all your paystubs from 2024 and look for any special payments that add up to $1,450. Second, if HR continues to ignore you, escalate to your manager or their supervisor - payroll errors affect the company's tax reporting too, so they should take it seriously. If you absolutely can't get a corrected W-2 before filing, you'll need to file Form 4852 (Substitute for Form W-2) explaining the error. But honestly, most employers will issue a W-2c once they understand the problem affects their own tax compliance. Don't give up on getting this fixed - it's worth the effort for accurate tax reporting.

One thing nobody mentioned - check if your dividends were "qualified dividends" because those get taxed at the lower capital gains rate instead of your regular income tax rate. Makes a big difference if you're in a higher tax bracket. It should say which type on your 1099-DIV.

Just a heads up that if you set up your account for dividend reinvestment (DRIP), it slightly complicates your eventual capital gains calculations when you do sell in the future. Each reinvested dividend essentially creates a new lot of shares with its own cost basis and purchase date.

11 Our tax attorney recommended we establish a detailed shareholder agreement that requires minimum distributions of a certain percentage of earnings each year. This has helped address potential AET issues by demonstrating we're not unreasonably accumulating earnings. Has anyone else implemented something similar or found other governance approaches that help with these tax issues?

As someone who's dealt with similar PHC and AET challenges, I'd recommend focusing on three key areas: documentation, diversification of income streams, and formal governance structures. First, create bulletproof documentation for everything. We maintain detailed investment committee minutes that show our decision-making process, market analysis, and business rationale for each major investment. This helps demonstrate that our activities constitute active business operations rather than passive investing. Second, consider diversifying your income sources beyond traditional investments. We've had success providing family office consulting services to other wealthy families, offering investment research to institutional investors, and even acquiring small operating businesses that complement our investment thesis. These activities help keep passive income below the 60% PHC threshold. Finally, implement formal corporate governance that demonstrates you're operating as a legitimate business entity. Regular board meetings, written policies, employment agreements for family members who work in the business, and documented compensation studies all strengthen your position. The key is being proactive rather than reactive - don't wait for the IRS to question your structure. Build defensible positions from the start.

One important thing to know is that dependent filing requirements change based on whether the person is blind or over 65. For most young dependents like your sister, the standard earned income threshold applies (about $13,850 for 2024 tax year), but it's lower for those with disabilities or seniors.

Just wanna add something most people don't know - if your sister has self-employment income (like babysitting, lawn mowing, online stuff), the threshold is SUPER low, like $400. My daughter got caught by this when she did some social media work and made $600. Even though she was way under the regular income limit, she still had to file because of self-employment tax. Something to watch out for!