My mother-in-law passed away and my wife asked me to try to use TurboTax to do her final taxes.
TurboTax immediately asked if she was deceased to which I responded yes. And then walked me through a whole bunch of stuff perhaps everything it could. In the end all I really input was her social security, $100 or so in interest and the amount she spent on her live in care and medical equipment costs. I'm like prior years she had no massive distribution to pay for a 24/7 care... Sadly the money was just about out.
It prompted me about getting a letter from the IRS about 1400...my wife said she never did and checked my mother-in-law's account and never saw in March 1400 check deposited. Also I know Mom paid taxes on her house because I was looking through the settlement paperwork and I saw they were prorated for the person who bought the home back in september. My wife does not know if she has those figures and I'm wondering if I even need to enter them because TurboTax is saying she owes nothing... Without answering the taxes.
The only thing that bothers me to a small degree is it says she's entitled to a $1,400 refund. I questioned this because I'm not sure why she wouldn't have gotten the check last year unless the fact that she cashed in a large amount of her investment in the prior year to cover her 24/7 live in perhaps put her in an income bracket that wasn't allowed to get the $1,400?
Any thoughts on this? TurboTax asked me nothing about her estate, the house sale and stuff like that so I will assume it's not apropos for filing taxes..
Any comments on the $1,400, perhaps things to know or consider when filing for a deceased person or what happens to your estate and how it impacts your taxes .....I'm open to reading. Otherwise this actually looks like it was pretty straightforward. I'll be it sad.
