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bill_s2
March 30, 2024
Question

Why does TurboTax Business 2023 say I am required to file a state business income tax return for an estate in Texas?

  • March 30, 2024
  • 1 reply
  • 0 views
I'm using TT Business 2023 (desktop version) to file the final  federal income tax return (Form 1041 for Estates and Trusts) for a person that died in 2023.  The return is very simple, having one income item (Schedule K-1) and one deduction.  After completing the federal review portion, TT moves to State Taxes where it declares: "This year, you are required to file a state business income tax return in Texas.  This state business return is not available in TurboTax. To complete this return, visit your department of revenue and download the appropriate forms to print or file separately.

To my knowledge and after doing some online research, Texas requires no such return.

Why does TurboTax claim a state return for Texas is necessary?

1 reply

March 30, 2024

Estates are not subject to taxation by the state of Texas.  This may have been a generic message that pops up with TurboTax Business. 

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bill_s2
bill_s2Author
March 30, 2024

The TT message is not generic. It erroneously states without uncertainty that I am required to file a return in Texas. Although it does call it a "state business income tax return" as opposed to an estate return.  I attached a screenshot below. Intuit should correct this error.