Do I Have To File A Tax Return For My Deceased Parent?

When a loved one dies, those that are left behind have more to do than grieve. Utilities have to be disconnected, auto insurance should be cancelled, provision for payment of the expenses of the final arrangements have to be made, insurance claims must be processed, and final financial documents must be prepared in order to wrap up the estate of the deceased. We’ve all heard it said that nothing is certain in life but death and taxes, but are taxes still due even after death? Dealing with the emotions that go along with the death of a family member is hard enough, add to that burden the administrative functions that need attending to and it can seem overwhelming to finalize and estate. Aside from any probate issues, it is critical to make sure any lingering tax issues are also resolved.

Knowing just what to do about taxes is easier said than done, and the IRS website has the following information:

• First, determine the filing status of the deceased person (single, married, head of household).
• Second, identify any social security benefits paid in the year of death.
• Third, gather all reports of taxable income paid to the decedent for the tax year in question.

Other tax questions, similar to those that you answer for yourself when filing, will need to be answered as well. For example, you will need to figure out what exemptions your loved one was entitled to take, and the amount of those exemptions. Once you have provided answers to these and other tax questions specific to your loved one’s personal circumstances, you will be able to determine if a tax return must be filed. The size of the estate is also a consideration, and for accurate information it is best to seek the advice of a qualified legal tax professional. Even in death, it is important to follow the rules and stay on top of all tax related issues. The sooner you gather the required information, the sooner you will know how to proceed. Leaving tax matters until the last minute is not a good idea, and tackling these issues head on helps ensure a smooth and efficient administration of the estate.

If you have questions about taxes and whether a tax return for a deceased person is required, let the professionals at Nielsen Law Group help you negotiate with the IRS. Call (480) 888-7111 or submit a web request here.