How do you file income taxes for a deceased parent?

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.

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.

For everyone's information 1/4 of testable exam for CPA IS TAXATION. Further, most accounting work is RELATED to valuation and asset classification and period matching...ALL of these choices/items have tax consequences. As a CPA candidate, I was REQUIRED to take TAX LAW 1/2 , two semesters. I also had a masters level elective in special topics in TAXATION.
Any good CPA is a better risk to use for preparing your return! They have professional standards and licensing to maintain. Most CPA's are qualified to prepare most individual 1040s. They tend to understand the language of the IRS, too. H&R Block makes plenty of mistakes...don't assume.

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.

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.

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.

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.

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.

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.

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?