Eatate Taxes

Forum|Forum|4 years ago
January 6, 2022
1 reply
22 views

My daughter died in 2020. I filed her income taxes in 2021. We were not able to collect her assets until 2021. Those assets did not cover her funeral expenses and there was a number of other liabilities we were unable to pay. I am required to file a report about the estate and, if so, what form do I use?

Best answer by Anonymous_

I am very sorry for your loss @Jim_Carmody.

The estate is not required to file a federal income tax return (Form 1041) unless it had gross income for the 2021 tax year of $600 or more.

See https://www.irs.gov/instructions/i1041#idm140229151947712

You might want to seek guidance from local legal counsel to ensure matters are wrapped up properly.

See https://www.avvo.com/probate-lawyer.html

Anonymous_Answer

Level 15

I am very sorry for your loss @Jim_Carmody.

The estate is not required to file a federal income tax return (Form 1041) unless it had gross income for the 2021 tax year of $600 or more.

See https://www.irs.gov/instructions/i1041#idm140229151947712

You might want to seek guidance from local legal counsel to ensure matters are wrapped up properly.

See https://www.avvo.com/probate-lawyer.html

fanfare

Level 15

since the estate was depleted by funeral costs, etc., there is no need to file an estate tax return.

Jim_CarmodyAuthor

Level 2

Thanks for the update. One further question. If the creditors had forgiven the debt for my daughter while she was living, she would be responsible for reporting the income. Does that change with the estate?