My Mom passed away in July of 2018 and was an Indiana resident when she passed. She was widowed, 72 years of age and had received less than $14,000 in SS benefits when she passed. She had no investments, no interest earned in 2018 and no other income in 2018. She did however sell her home before her death and used her profit to pay for her assisted living care and other medical expenses. Her net gain on the sale of her home was less than $40,000...which she used in full.
After I reviewed Moms 2018 SS 1099 and completed the accompanying worksheet on the backside of it, it appears that I do not need to file a 2018 Federal form for her.
Am I correct in thinking that I don’t need to file a 2018 Federal tax return for Mom?
When I review the IN state tax form it indicates that I need to enter info from her 2018 Federal Tax form and since it appears that I don’t need to complete a Federal form…I am confused. I also read on the IN tax site that there is a $2,000 income minimum for someone over the age of 65 and since Mom was 72 it sounds like I might need to file an IN form for her. Not sure what to do here...
I am Mom’s Executor and I live in the State of Minnesota. I have phoned a few different tax places and they tell me I probably don't need to do anything but I fear I could get in trouble if I don't do the right thing.
Any advice or guidance is deeply appreciated.
Thank you so much