Filing my mother-in-law's final returns and taking the state tax paid deduction on Schedule A. The state will issue a refund for over payment. Normally this refund gets accounted for in the following year. If I enter the correct tax due the state in Schedule A, then the state return has the wrong amount for estimated taxes paid. How should this be handled?
You'll need to sign in or create an account to connect with an expert.
The taxing agencies will most likely issue you a notice of adjustment for any changes made.
As this is a final income tax return for the taxpayer, there would no longer be any individual tax return filing requirements for them.
Can I just use the override feature to correct the amount on Schedule A from tax paid to tax due amount? I tried this and it did not affect the state return. Then this filing would be the end of it.
You don't need to override anything, take the deduction, and this tax return will be the final one. There will be no filing requirement next year.
Only income earned between the beginning of the year and the date of death should be reported on the final return. For taxpayers who use the cash method of accounting, as most do, income is considered earned as it is actually received or at least made available to them. Taxpayers who use the accrual method of accounting, on the other hand, count income as earned when they actually earn it, regardless of when they receive it. The distinction is important because some income that might logically seem to belong on the decedent's final return is considered income in respect of a decedent (defined below) and is taxable either to the estate or to the person who receives it.
I am sorry for your loss.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
kamal444
Level 2
jose-o-irizarry
New Member
Sactax74
Level 2
rentasinternas
New Member
mm1232
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.