Til Death Do Us Part - Paying income Taxes For a Deceased someone
Think because a loved one died, you won't have to deal with the Irs? Think again. The good news is that, with the right professional knowledge, filing a tax return for a deceased person doesn't have to be difficult. While there are different types of taxes, this record will discuss federal wage taxes.
Til Death Do Us Part - Paying income Taxes For a Deceased someone
Even though the taxpayer died, taxes still must be filed for that person by April 15 of the year that follows the person's death. When filling out the last tax return, use the same form the taxpayer would use if still alive but write Deceased after the person's name. On the tax return, record the wage the taxpayer earns from the beginning of the year until the date of death.
Who Files the Taxpayer's Final Tax Return
The executor will regularly file the final tax return. If you are the executor, be sure to sign the return for the deceased taxpayer. If a joint return is filed, don't forget to get the spouse to sign as well. If feeling able, a surviving spouse may also file the return. The surviving spouse qualifies as a widow or widower for two years after the spouse's death, which allows them to use the tax brackets that are used when filing married-filing-jointly returns. The surviving spouse needs to sign the return and write filing as surviving spouse, where the decedent would have signed. If there is no executor or spouse to file to return, an additional one person may be responsible for filing the last tax return, in which case that person should sign the return, saying that they are signing on profit of the decedent.
If a repayment is due, be sure to also file Form 1310 Statement of person Claiming repayment Due a Deceased Taxpayer, found at http://www.irs.gov/pub/irs-pdf/f1310.pdf, with the Irs.
Savings and Investments If the taxpayer has savings or other investments, only interest earned up to the date of the person's death is reported on their tax return. Money earned after the taxpayer's death is taxed to the inventory beneficiary or the estate. Get ownership of these types of accounts changed as fast as potential after the taxpayer's death. Since this type of wage is regularly reported on a 1099 form, the form may show more wage for the taxpayer than it should. When this happens, record the whole number on program B of the deceased's return and deduct the number that's reported by the estate or beneficiary who collected the income.
Deductions Deductions taken before death can be recorded on the taxpayer's final return. The cost of an illness (medical bills) can also be deducted on the taxpayer's final return, recorded as being paid at the time expenses were incurred.
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