When a person passes away, their family is left to deal with their affairs. These affairs include paying their taxes. Filing taxes for deceased family members doesn’t have to be complex, though. Let’s look at what types of taxes you may need to pay.
When a person passes away, their family is left to deal with their affairs. These affairs include paying their taxes. Some Types of taxes the deceased may owe include:
Final Income Taxes
For the last year the person lived, they may owe taxes. This is usually reported to the federal government on the person’s final 1040. The surviving spouse, executor of the will, or administrator of the estate will usually file the state and federal income tax returns.
Estate Income Taxes
When an estate has assets it is holding after someone dies, such as financial accounts or real estate, and those assets yield income, the estate may have to pay income taxes. The form used for that is a 1041.
Death or Estate Taxes
These taxes are not as common as people often think. There is a large exemption for most people that prevents a filing from ever being required, and only about 2500 returns are filed each year nationwide because the exemption is so high.
However, sometimes people will file these tax returns even when they aren’t required in order to take advantage of additional tax benefits available to surviving spouses. If a tax return is done for this, you would use Form 706.
We Can Help
While our office does not provide tax preparation services, we can provide referrals to qualified professionals and provide legal support.
We are experienced legal professionals that provide guidance with matters involving the probate court. If you or someone you know is faced with navigating the probate system and could use the assistance of a professional, please let us know how we can help. Contact us and find out how we can help you today!