Filing Taxes For Deceased
Question: How should I File mom’s taxes with deceased dad?
I’m trying to help my mom file her own taxes for the first time. Previously my dad filed joint with her and the only income was his SSI Benefits which only made him around 3,400K this year before he passed away. My mom now has a small job since he passed away and I’m wondering whats the best way to file her taxes for her. Can she still file online as Joint with a deceased partner? Or should I file her as a widow? She thought I had to file her as single, which I’m not so sure about. They have no dependants but her cost of live is far more then what she makes. Total income for the tax year would be around 11K with both added together, nothing of value stands between them. I want to help her and do this right. Any advice would be greatly apprechiated!
Answer: You file based on what she was Jan 1, 2008 at the beginning of last year.
If she file married filing jointlylast year, she should file married jointly this year (but not next year).
Filing Tax Return For Deceased
Question: Does the Administrator of CD need to apply interest to their tax return?
The CD is actually in my deceased great-grandmothers name and my great aunt is the administrator of the account and has been the one handling it and cashing in on the interest. Would my great aunt be responsible for filing this on HER taxes even though the account is in someone else’s name?
Answer: Is this really the estate of you great-grandmother, with your great aunt being the administrator (called executor in some states)? If so, the income belongs to the estate, not your great aunt, and the estate must claim it on the estate income tax return. You great aunt, of course, would be responsible for filing such a return.
Your great aunt would be, in general, entitled to some compensation for being the executor, unless she waives it for some reason. That has nothing directly to do with the interest, and she would have to report that compensation on her income tax.
Your Aging Parents And Tax Season: A Getting-Started Guide
With the first baby boomers reaching retirement age, many adult children are now or will soon be caring for elderly parents and family members. The U.S. Census Bureau tells us that the retired and retiring populations are growing and those born between 1945 and 1964 are now tasked with the care of the previous generation.
Getting Organized
Tax Deceased Estate
Question: Should we sell now or wait for it to be part of the estate?
My family has 18 acres of pasture land in Louisiana. My Dad who will be 80 this year and is in poor health is thinking of selling it. We have been renting it out a few weeks every year for a municipal event. It has been in my deceased mother’s family since before 1920 so the question is if we were to sell it now would we have to pay capital gains based on the price it sold for back before 1920 or should we wait and let it become part of the estate and pay estate taxes based on the appraised value or would it be the same? He doesn’t need the money; we just won’t be going back down there since my relatives have all passed away in the last 10 years.
Answer: If you sell it now, you will pay capital gains. If you wait until it’s in his estate and the estate sells it, you may not pay any estate tax at all, depending on the value of the estate as a whole — currently, an estate tax exemption applies to estates with a value of up to $2 million; and in 2009 this increases to $3.5 million; and then in 2010 the estate tax is “repealed” altogether. (See Smart Money link below.) I say “repealed” in quotes because in 2011, the law sunsets and estate tax rates go back to what they were when the law changed (I believe that was 2001). So if the estate is opened between now and 2010, you may not pay estate tax at all. And of course, Congress could extend the law between now and 2011. So, there is some uncertainty involved.
The above addresses federal taxes. You’d also have to check to see if your state levies an estate tax, some states do.
But one thought — with the uncertainty above, you might consider having your dad put the land in a trust. This could be used to avoid estate taxes AND avoid the probate process. The trust beneficiaries would receive the property at his death with a “step up in basis” — meaning if they turned around and sold it after he died, their gain would be based on the land’s value at the time of his death and NOT its value in 1920. (See paytaxeslater.com link below.) In fact, if your dad hasn’t already done so, he might consider this approach for all or most of his assets.
You should run this by an experienced estate and trust atty where you live, with some planning now you might save some taxes.
Changes to estate tax stir up debate
The North Platte Telegraph If you’re reading this, it means your children, spouse or whomever you’ve left in your will loves you more than money. If they didn’t, you might be dead. Financially, it would be in their best interest.
Estate Planning : Do You Have to File an Income Tax Return After Someone Dies?
Deceased Taxpayer Return
Question: How to sign documents for a Deceased Taxpayer?
My friend’s boyfriend died after new year at the age of 24 and so there’s no will and no representative so she is going to file his return for him and using form 1310. They each always claim one of their sons on their return so of course she wants to be able to claim his refund by using form 1310. My question is how is he suppose to sign his return if he’s deceased?
Answer: The personal representative signs it
“her name, personal representative”
Cheaper prices – and you pay GST
Gerry Harvey and the other retailers are barking up the wrong tree (”Harvey hurt by buyer backlash”, January 7). My most recent major appliance purchases were a dishwasher and a refrigerator. Both were purchased from Australian internet-only shops. I researched the products online, read reviews, downloaded the manuals from the manufacturers and made my decisions without stepping outside. Full …
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