Is anyone using TurboTax for estate returns? I can't figure out where to enter the 1099-R information for an estate tax return. It keeps trying to put it on my personal return instead.

Just wanted to add my experience for anyone else dealing with this situation. I was the executor for my mother's estate last year and faced a similar issue with an annuity 1099-R. The key thing I learned is that the estate's EIN being used instead of the decedent's SSN is actually correct - it means the annuity company properly identified the estate as the beneficiary. In my case, the amount in Box 2a was indeed taxable to the estate, and I had to report it on Form 1041. The insurance company calculates this based on the contract's basis and earnings. One thing that helped me was requesting the annuity contract details from the insurance company - they can provide a breakdown showing how they calculated the taxable vs non-taxable portions. Also, don't forget that if the estate distributes this money to beneficiaries in the same tax year, you might be able to pass through the tax liability to them using Schedule K-1, which could result in lower overall taxes depending on their tax brackets. Definitely worth discussing with a tax professional who specializes in estate matters.

One thing people overlook in this discussion - if one of you has significant medical expenses (over 7.5% of your AGI), filing separately COULD be beneficial. My husband has ongoing medical issues, and his expenses easily exceed that threshold on his income alone. But when combined with my income, we couldn't deduct as much. We saved about $1,800 filing separately last year despite losing some credits. Just another angle to consider based on your specific situation. Tax software often misses these nuances.

Adding to the great advice already shared - as someone who's worked in tax preparation for over 15 years, I can confirm that for your specific situation (significant income disparity, three kids, homeownership), filing jointly is almost certainly your best bet. The key thing people don't realize is that when you have unequal incomes, the lower-earning spouse essentially "fills up" the lower tax brackets first, creating substantial savings. With your $120k/$40k split, you're getting maximum benefit from this effect. A few quick calculations based on your numbers: filing jointly, you'd likely qualify for the full $6,000 in child tax credits ($2,000 per child), plus potential additional child tax credit refunds. Filing separately, the higher-earning spouse would lose most or all of these benefits due to income phase-outs, while the lower-earning spouse couldn't claim all three children. My recommendation: run the numbers both ways using tax software, but I'd be genuinely surprised if separate filing saves you money. The math just doesn't work out in favor of separate filing for families with kids and significant income gaps like yours.

I got a class action check for $835 last year for that phone battery settlement. Never reported it. Nobody sent me any tax forms. Am I screwed?

Just wanted to add another perspective here - I went through a similar situation with a consumer protection class action last year. The key thing that helped me was getting copies of all the settlement documents from the court clerk's office. The final settlement agreement usually spells out exactly what each component of the payment is for, which makes the tax determination much clearer. In my case, what I thought was just "damages" was actually broken down into three categories: restitution (not taxable), civil penalties (taxable), and interest (taxable). Without seeing that breakdown, I would have gotten it completely wrong on my taxes. Also, if you're dealing with a large settlement administrator like Angeion or Gilardi, they often have tax guidance documents available on their websites that are specific to your case. Worth checking before the payment arrives so you can plan accordingly.

I went through this exact situation last year with my grandmother's estate. After trying a few different options, I ended up using TaxAct Premium which worked well for a moderately complex estate with rental income and some investment accounts. One thing I learned the hard way - make sure you understand the difference between income that stays on the estate return versus what gets distributed to beneficiaries on Schedule K-1. This tripped me up initially because the software assumes you know these concepts already. Also, don't forget about Form 706 if the estate is over the federal exemption threshold. Most online software won't handle that form, so you'd need to know upfront if it applies to your situation. If the estate has any unusual assets (like business interests, foreign accounts, or complex trusts), seriously consider hiring a professional even if it costs more. The potential penalties for mistakes on estate returns can be substantial.

Great point about Form 706! I just went through this with my aunt's estate and almost missed that requirement. The estate was just over the threshold at $13.2 million, and none of the consumer tax software I looked at could handle Form 706. One resource that really helped me was the IRS Publication 559 (Survivors, Executors, and Administrators). It's dry reading but explains the difference between estate income and beneficiary distributions pretty clearly. I wish I had read it before starting the 1041 process. Also want to echo the advice about gathering all documents first. I thought I had everything organized but kept finding additional estate expenses weeks later - attorney fees, appraisal costs, even storage fees for estate property. Having to amend a 1041 is not fun and can delay getting the final distributions to beneficiaries. If anyone is dealing with a relatively simple estate (under $100k in income, basic assets), the online software options mentioned here should work fine. But if there's any complexity at all, the peace of mind from using a CPA who specializes in estate returns is worth the extra cost.

Has anyone used tax software to handle an amendment? I'm trying to figure out if I should just use the same software I used for my original return (TurboTax) or if it's better to fill out the 1040-X manually.

I'm dealing with almost the exact same situation right now! I forgot to include about 3 months of unemployment compensation when I filed in February. Just got my 1099-G in the mail last week and realized my mistake. I've been putting off handling this because I'm terrified of dealing with the IRS, but reading through all these responses is really helpful. It sounds like filing an amended return is pretty standard and not as scary as I thought it would be. One question - if I already received my federal refund but haven't gotten my state refund yet, should I contact the state to let them know an amendment is coming? Or just file the state amendment and let them figure it out? I'm in California if that makes a difference. Thanks everyone for sharing your experiences - it's really reassuring to know I'm not the only one who made this mistake!