We had 2 years of my dad's pension income given to us in 2021 after my dad passed. He passed in 2021. My dad had dementia. What is the best way to file his taxes so we won't have to pay penalties for him not filing since 2019?
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You file a tax return for a deceased person more or less the same way you file your own taxes.
On the screen titled, Your personal info look for the question, "I'm preparing this return for a Taxpayer, who has passed away." Once you answer that Yes, you will be asked for the date.
After that, continue with the return in the regular way, entering income, deductions, etc.
If Form 1310 is required, you will be prompted to answer a few questions about that near the end of the interview. Form 1310 is used to provide information about your right to claim a refund on behalf of the decedent.
If your father should have filed a tax return in 2020, but didn't because of his condition, you should just file that return as soon as you can.
Click here to get 2020 tax software.
Regarding penalties, due to the Coivd 19 pandemic, most tax penalties were waived for 2020 regardless of the reason. I would just file the return as soon as possible and then let the IRS assess penalties if they want to.
I would be surprised if they did assess a penalty, but you can call our Audit Support Center after you get the IRS letter and they will help you request a waiver. I am very sorry for your loss.
Click here for the Audit Support Center.
IRS does not penalize for reasonable excuse, such as medical issues.
You would have to request waiver of a penalty after it appears on some IRS notice of penalty.
for 2021 you can request an extension of time to file Form 4868 if you are still collecting documents.
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