Tax Returns For The Deceased

Tax Returns for the​ Deceased
Two things in​ life are certain – death and taxes .​
Here’s what to​ do if​ the​ two are combined as​ far as​ filing a​ tax return .​
Tax Returns for the​ Deceased
If a​ person dies,​ their finances are immediately converted into something called an​ estate .​
The estate is​ then responsible for filing a​ tax return covering the​ finances including income and distributions to​ heirs and beneficiaries .​
However,​ a​ final personal tax return must still be filed for the​ deceased .​
The final personal tax return for the​ deceased is​ known as​ Form 1040 .​
Yep,​ you​ file the​ same tax form as​ you​ would for any personal tax return .​
It is​ hard to​ believe the​ IRS passed up an​ opportunity to​ create another form,​ but there you​ go .​
Miracles do happen .​
When determining the​ income and taxes due for a​ person who passes away,​ the​ date of​ death is​ the​ cutoff .​
All income earned before that date for the​ year goes on​ the​ personal tax return .​
All income earned after death is​ the​ responsibility of​ the​ estate and will be reported on​ the​ estate tax return.
As to​ deductions,​ there is​ good news .​
Regardless of​ the​ time of​ the​ year when the​ grim event occurs,​ you​ can claim the​ full deduction for the​ year and any other expenses that occur prior to​ death .​
Put another way,​ you​ don’t have to​ calculate any ratios based on​ the​ number of​ months that have passed .​
If someone passes away in​ February,​ you​ still get the​ full write-offs for the​ rest of​ the​ year .​
When a​ person passes away,​ an​ executor or​ trustee will be in​ charge of​ their estate .​
The exact designation depends on​ what type of​ estate planning they did .​
Nonetheless,​ this person will sign the​ tax return and note the​ person is​ deceased .​
This should take care of​ everything with the​ IRS excluding the​ estate tax return .​
What happens if​ the​ deceased is​ due a​ tax refund? in​ such a​ situation,​ the​ IRS will not just kick out a​ refund unless the​ deceased was married .​
If married,​ the​ refund is​ sent to​ the​ spouse .​
If not,​ you​ must file a​ Form 1310 to​ get the​ refund .​
This form basically says you​ are claiming the​ refund,​ have the​ right to​ do so and absolve the​ IRS of​ any involvement in​ subsequent disputes.
Tax Returns For The Deceased Tax Returns For The Deceased Reviewed by Henda Yesti on July 02, 2018 Rating: 5

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