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My mother died in November 2011. My father's been dead for 13 years. April 15 is coming and I have no idea what to do (or if I should) file federal and/or state income taxes for my mother. She lived in a NH for all of 2011 until she died and her money was spent down on the monthly rent, but there was some money left when she died, which went to me, POD. There was no real estate.

My husband has always done our taxes and, for the past 5 years, my mother's. He's getting nervous about doing hers this year but we don't want to go to H&R Block or anything. I'm hoping it will be fairly simple. Do we need a special form? Her money did generate some interest, so if she actually owes taxes, do we have to pay it?

Any advice or information is very much appreciated. We're in NJ.

Thank you

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I don't know the answer. If she owes taxes, my guess is that the IRS would look to the estate, which you inherited. I think you need some tax advise from a professional. Sorry I can't give you a better direction, but your info is kind of vague.

For example, how much money did she leave you and is it exempt from inheritance tax? I'm not a tax person, but if your husband is nervous, then there must be a reason. Get some professional guidance.

Good luck and God Bless you. I hope it all works out and is simple.
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AARP has a free senior tax assistance program in all states. Some sites are walk-in and some sites require an appointment. So on AARP site to find a site in your state and schedules.

In my mom's and late MIL state, they have VITA - Volunteer Income Tax Assistance program. In my mom's city it's a United Way/Catholic Charities and University Law school joint program. The volunteers are trained. It's free.

AARP sites don't handle anything complicated. VITA site does but only at the law school. Both require ID's and prior returns and DPOA or executor paperwork.

My MIL died last year and we are doing her taxes, it's a good idea to have the taxes done to present to probate to show there is no IRS debt or other liens. I went to an AARP location first and they sent me to the VITAS law school site as she had 1099-C's (cancellation of debt) and don't do those. Good luck.
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Oh and the VITA program is done on a federal grant, so most states have VITA. I think they have to have a law school to partner in order to have it set up.
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My CPA handled my mom's....she died last May. I let them handled it I case the IRS had questions. If audited, they will go with me and answer questions.
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It would be wise to go to CPA. My husband passed last year. CPA put deceased at top of 1040 Form and I filed jointly. Signed 1040 as survivor.
Tax possibly owed on interest (depends on amount).What money she had at time of death will 1st go to pay her outstanding debts, then to you. Hold on to money you received until her debts (including taxes) are paid.
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Well, I didn't think you had to file for a decesed parent but just in case that she may owe Uncle Sam. I would either go to what Igloo suggested that, "the AARP has a free senior tax assistance program in all states."
OR go with what a couple of others had suggested and that was to talk with a CPA if you can afford it. Good Luck.
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I want to thank everyone for their advice and the time they took to answer my question. I signed on to this forum a few years back when I needed support and comfort from folks who I believed to be in the same boat as myself: I had an elderly mother who I loved and wanted to see her get the best care possible during the last few years of her life. I'm a realistic person and I knew my brother and I were not going to be the ones to provide her with that. I put her in a NH in Jan 2011 and watched her thrive and regain a smile on her face as she met new friends and was entertained with daily activities. The staff caring for her was wonderful and when she died in Nov 2011 they sincerely shared my sorrow. I've never once had an ounce of regret or any second thoughts about moving her to that home. The decision was made for her well-being and that was my only concern. The reason I'm writing all of this is to say good-bye to this forum. Someone posted an answer to not this tax question but to one I had asked more than a year ago, about how to move my mother to the NH when the time came. The recent response I received to that question was so unnecessarily mean that I've decided to get out of Dodge and leave this site. Thank you to everyone who has helped me through this difficult time of my life. This forum, along with other eldercare forums on the web, are a wonderful resource for those who need an answer to a question or just a hand to hold. God Bless all of you nice people here on Aging Care. To those who aren't so nice....well, I'll just keep my thoughts to myself, just like you should have.
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Before you go DogGrrl, I'd call the IRS and ask them what to do. I've had to call them in the past about something, and they were very helpful. Sorry about your mom dying. It will be a year next month since my mom died, so I hear ya. Bye.
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DogGrrl, I hope you have not left for there is one thing that I do know about filing income taxes for a diseased parent. Who is the executor or executrix of her estate? The IRS will want you to contact them about her death, plus will want a copy of her death certificate and proof of who the executor or executrix of the estate is. Then, they will give you an ID number to write down beside the signature of whoever executes the will of her estate on the tax return. Also, the money that you inherited from your mother. Was it in a joint account with you having the right of survivorship with her being the main owner and thus liable for taxes on whatever interest that it earned before she died? While there will not be any inheritance tax on that money, whatever interest that account earned while she was alive is. When my mother could no longer do her taxes, as her durable POA, I had to get a identification number from the IRS to place on her tax returns that a CPA does. All they requested was a copy of the durable POA. I sign her taxes using my name with the id code. Why does your husband not want to go to H & R Block or anyone? I'd go to a CPA before I'd go to H & R Block.
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cmagnum,

I'm still here - thanks for your answer. My brother and I were co-executors. Her bank account was not a joint one, it was in her name only, with Payable upon Death to myself and my brother. It earned some interest in 2011, so I figured she would owe something. I guess that'll have to come out of the inheritance. My husband will be calling the IRS - thanks to everyone who suggested that. The reason he (and I) don't want to go to H&R Block is simple: they charge money. We may end up having to spend some on a CPA anyway if this all gets too complicated, but her estate was so simple, I'm hoping we'll be able to figure it all out.
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My mother passed away in Feb 2013, when i file her taxes for a refund do i use her pin number or my pin number for the refund?
Thank you,
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I'd call the IRS help line to find out: IRS Tax Help Line for Individuals
(800) 829-1040
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My Mother passed away back in 2007 and my father just passed away this April 2014. Many years ago they drew up a "Revocable Living Trust" and funded the trust with Annuities, IRA's, checking and savings accounts and their home and property totaling approx $250,000.00. I am now the trustee of the trust. I know I will have to file a income tax return and probably a estate tax return. My question is: will that $250m need to be shown as income on my fathers return in which the estate would receive a large tax bill and, would the distributions given to me and my siblings (4) which could be anywhere from $15m to $50m need to be reported on our own individual tax returns as income?
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Steve7274 do a google search on "family trusts and taxes" and you'll find a wiki from Motley Fool explaining trusts. There's also a good link from bankrate with more info about kinds of trusts and tax consequences. A lot depends on how the trust was set up. It's probably a good idea to either contact a good CPA or the IRS hotline: IRS Tax Help Line for Individuals (800) 829-1040.
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steve7274 I went through this back in 2013 when my father died. His trust was around 1 million between property and investments. It was not shown as income to any of the beneficiaries... and the only taxes we owed were on the dividends and other investment income that was received by the trust while it was open. Each beneficiary received a K-1 for their share of the income less expenses. I have always done my own taxes, as I have a "background" in finance... but not this time... I went to a CPA for the Estate and Trust stuff... I wanted to make sure it was done correctly! The CPA fees are an expense that can be allocated to the trust.
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My dad died in March, is there anyway I can file taxes now rather than wait tip January, I'd like to close the estate. He collected some social security and retirement in 2015 so a refund is due.
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You will probably have to wait until January as IRS does not usually print the 1040 Form for 2015 until after January1, 2016.
You will file return just as if Dad was still here - just put "deceased" at top of front page on 1040 Form.
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You will have to wait for the new documents to be printed and any updates made to the tax codes before it can be sent in. It often takes about a year to close someone's estate. Why the rush?
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Jim - also that refund is an asset of the estate. If there are any claims or liens against the estate, the IRS refund will need to be used to pay against those debts in order of how probate is done in your state.

All of this takes time. I'm dealing with my moms probate & her state allows 4 years for it to close.

Cashing in the deceased IRS refund to you personally has all sorts of issues.
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The bank should have already set up an account called the state of your father's name. Any checks coming to him such as a refund from the IRS would need to and only could be legally deposited into the account called the state of.
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I meant the estate of not the state. This is what happens when you speak a post in via a smartphone.
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jiminseattle, you will have a harder time filing taxes without the 1099s. You can try, but there is information on the 1099s that need to be copied over. You also don't want to guess at the amount.

If someone dies in a year, they are considered as having been alive the whole year. They get the complete standard deduction (or itemized, if that is the case). SS will probably not be taxed unless retirement income was high. From what you write, it sounds like it wasn't.

You won't be able to file online. You will have to have the authority to file the tax return and to sign as a personal representative. If you are the executor of the will, there is no problem. IRS has instructions online about special things to do when the taxpayer is deceased. It is pretty simple.
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jiminseattle,

Why the hurry for the tax refund?

There's a lot of anxiety here over something that will not move any faster than it does on each year's cycle.

Are you the executor? If you are not, then who is?

Social Security has been informed of his death?

Was his money moved into an the estate of _____________ account?

Is there a will?
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1099s are sent out by I think the end of January or February. I"ve gotten corrected 1099s from investments as late as March with my CPA does not like. I don't like it either.

One copy is sent to your deceased dad's old address and the other to the IRS. Those who send out the 1099s need to know the correct address to send them to, if that has not already been dealt with.

My memory tells me that you have to send a death certificate along with the return.

Even without the 1099 and guessing at it, you can't file because the forms have not even been made yet.
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That is true, cmag. I didn't even think of that. Since you can't file for a deceased person online and there are no 1040s yet, it would be hard to file. Someone out there, e.g. the tax services, may already have them in their computers. I checked and saw the IRS has released the draft forms online as a courtesy. These draft forms can't be used for the final tax return, however. People have to wait for the official form.
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My Dad passed away 2 years ago, Nov. 2013. My CPA filed his taxes under his name as he had just passed in Nov. My Dad had a will which left his 4 family house to both me and my 2 sisters, and all bank accounts to me (all joint with my name included). We decided not to sell the house as 2 sisters live their and maintain the building. My concern now is who claims his taxes? I am the execturist.
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Sorry to hear about your dad dying. I am confused. He died in November of 2013. His CPA filed his taxes in 2014. What do you mean who claims his taxes?

Who actually owns the house? Is the house paid for? Who pays the property tax and home owners insurance?

Two sisters are keeping up a house big enough for four families? That is a huge house! Isn't that too big for them?

For the last month of 2013, you should have had to pay taxes on the accounts you held jointly with your dad. That is true of 2014 and 2015 as well?
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My Dad passed away 2 years ago, Nov. 2013. My CPA filed his taxes under his name as he had just passed in Nov. My Dad had a will which left his 4 family house to both me and my 2 sisters, and all bank accounts to me (all joint with my name included). We decided not to sell the house as 2 sisters live their and maintain the building. My concern now is who claims his taxes? I am the execturist.
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This is exactly the same post from 17 hours ago. It does not answer any of the questions that I asked. Please answer the questions so that we can give you some answers.
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LadyDi - what is the status on probate for your dads estate?
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