Mom passed in August 2023. This will be her final tax filing.
Because estimated payments were made and income was not as high as it otherwise would have been, I expect refunds of ~$9k federal and $4k state in 2024 for the 2023 tax year.
Is the federal refund at all taxable for the 2024 tax year?...
I assume not, but what do I know.
Is the state refund (entirely composed of unneeded estimated payments) at all taxable for the 2024 tax year?...
I assume there's a federal tax because of itemized deductions (not Standard) for 2023. Will the refund be taxable to me, as executor, filing her taxes? Would I need to pay taxes on the full amount of the refund (as regular income)?
I am concerned because I am in a higher bracket than the deceased's return.
Is there a way to make (legal) adjustments on this years tax form for the deceased to somehow avoid 2024 taxes on the amount of the refund?
Thanks in advance!!!
