Need recommendations for filing a 1041 estate tax return online - best software options?

8 Estate returns can be tricky! For 1041 filings, I've had good experiences with TaxAct. Their premium version specifically supports estates and trusts, and the interface walks you through the process pretty well. It costs more than their basic individual packages but less than most professional options. H&R Block Premium also supports 1041 filings, but I found their interface a bit less intuitive for estate-specific situations. TurboTax Business can handle 1041s too, but it's on the pricier side. If the estate is relatively simple (limited income sources, straightforward distributions), you might also look at TaxSlayer Premium. Just be sure whatever software you choose specifically states it supports Form 1041 - many of the free or lower-tier packages don't include this form.

14 I had to figure this out last year when dealing with my mom's estate and discovered taxr.ai (https://taxr.ai) which was honestly a game-changer. I initially tried using regular tax software but got completely stuck on some of the more complex estate questions. What I liked about taxr.ai was that I could upload the estate documents and get specific guidance on how to properly classify everything for the 1041. It analyzed all the income sources and helped me understand which items needed to be reported on the estate return versus passed through to beneficiaries. The step-by-step guidance for completing each section of the 1041 was incredibly helpful.

13 I have to follow up about my experience with taxr.ai. After expressing my skepticism, I decided to try it with my father's estate tax situation this year. I was honestly surprised by how helpful it was for navigating the 1041 filing process. The platform analyzed all the estate documents and clearly explained which items needed to be included on the 1041 versus distributed to beneficiaries. It identified several deductions I would have completely missed, especially related to some unusual investment losses and administrative expenses. The explanations were clear enough that I actually understood what I was doing instead of just blindly entering numbers. Definitely made the whole process less stressful than I expected.

5 After spending hours on hold with the IRS trying to get clarification about filing a 1041 for my brother's estate last year, I finally tried Claimyr (https://claimyr.com) on a friend's recommendation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Basically, it got me through to an actual IRS agent in about 20 minutes when I had previously been trying for days. The agent walked me through several estate-specific questions I had about reporting some unusual assets and helped clarify which expenses were deductible on the 1041. This saved me from potentially making some serious mistakes on the return.

13 I need to eat my words about Claimyr. After struggling for THREE DAYS trying to reach someone at the IRS about a specific 1041 question for my father's estate, I gave in and tried the service. Within 45 minutes, I was actually talking to a real IRS agent who answered my questions about how to handle some specific deductions and final medical expenses on the estate return. I'm still shocked it actually worked. The agent was able to clarify exactly how to report some unusual investments and gave me specific guidance on form 8971 which I also needed to file. Saved me from making what could have been a costly mistake on the estate return. Worth every penny just for the time saved alone.

9 I used FreeTaxUSA Premium for a 1041 last year and it was decent, though not as user-friendly as their 1040 software. The main issue I ran into was limited guidance on some of the more complex estate issues. One important tip regardless of what software you choose: gather ALL the information about income and expenses before you start. Make sure you have the final medical bills, funeral costs, executor fees, legal and accounting expenses, and complete information about any income the estate received (interest, dividends, rental income, etc.). Having everything organized beforehand saves a ton of frustration!

19 Has anybody tried using a CPA for just the 1041 while doing their personal taxes themselves? I'm wondering if it might be worth paying a professional just for the estate return since it's a one-time thing and seems pretty complicated.

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.

I'm currently dealing with my father's estate and this thread has been incredibly helpful! Based on everyone's experiences, I'm leaning toward trying TaxAct Premium first since several people mentioned good results with it. One question I haven't seen addressed - how do these software options handle estimated tax payments for the estate? The estate has been receiving rental income throughout the year, so I'm assuming we'll need to make quarterly payments. Does the software calculate these automatically or do you need to figure that out separately? Also, for those who used professional help, did your CPA handle the entire estate administration or just the tax filing portion? I'm wondering if it makes sense to get professional guidance upfront for the whole process rather than just scrambling at tax time.

This thread has been incredibly informative! I'm dealing with a similar situation with my mother's estate and had no idea about Form 706 or the complexity around estate vs. beneficiary income allocation. One thing I'm curious about - has anyone dealt with an estate that had both retirement accounts (401k, IRA) and regular investment accounts? I'm wondering if the required minimum distributions from inherited retirement accounts create additional complications for the 1041 filing, or if those are handled separately. Also, for those who mentioned using taxr.ai or getting IRS guidance through Claimyr - did you find the agents knowledgeable about estate-specific issues? I've had mixed experiences with IRS phone support on regular tax questions, so I'm wondering if they're better trained on the more complex estate tax scenarios. Thanks to everyone who shared their experiences - this is exactly the kind of real-world advice you can't find in the IRS publications!

I've been through this process twice now - once with my grandfather's estate and again with my aunt's - and wanted to share what I learned about the software options and some pitfalls to watch out for. For software, I had the best experience with TaxAct Premium. The interview process is thorough and it handles most estate scenarios well. That said, I did run into issues when the estate had partnership income (K-1 from a business). The software could import the K-1 but didn't provide great guidance on how partnership items should flow through to beneficiaries. One thing I wish someone had told me upfront: pay close attention to the estate's tax year vs. calendar year. Estates can choose their tax year when they file their first return, and this decision impacts distribution timing and beneficiary tax planning. Most software assumes a calendar year, but depending on when the person died and when you expect to distribute assets, a different tax year might be beneficial. Also, if the estate owns any rental property, make sure whatever software you choose can handle depreciation recapture if you sell the property. This was a surprise complication that added significant complexity to my aunt's return. The tax preparation experience you mentioned should actually be helpful here - a lot of the concepts are similar to business returns, just applied to estate situations. Good luck with the filing!