Deceased Mother Taxes. Dates Lived In State. How To Enter

[FederalInquirer]

Hi!

I'm doing my mother's taxes for 2003. She passed away in June 2003. In "Federal Taxes|Deductions & Credits|Tell Us Where You Lived" I select the state where she lived, but I'm not sure in "Dates Lived There" what should I enter? Do I enter from January to June? Or should the whole year be entered b/c she didn't live in any other state?

Any help will be appreciated

Sincerely,

Nick

[tmmyiol]

Final Return for Deceased Person

• The final individual income tax return of a decedent is prepared and filed in the same manner as when they were alive. All income up to the date of death must be reported and all credits and deductions to which the decedent is entitled may be claimed. A final return must be filed (if required), either by the surviving spouse (if any) or executor.

•  If the income (earned or have a right to receive) is received after the death of decedent, this Income is called IRD (in Respect of a Decedent). IRD is reported on the return of the individual(s) or entity (estate) that received it as if his/her income. 

• Normally, money a beneficiary inherits is not subject to federal income tax, but a major exception is money in traditional IRAs, employer-sponsored retirement plans (401(k) & 403(b)), and annuities are treated as IRDs and taxed to the heir. 

• If there's no surviving spouse, then the trustee, executor or administrator must file Form 56 letting the IRS know that they're the person responsible for the final tax return.

• Surviving spouses can file a joint return in the year of death, no matter when during the year their spouse died. The return can use the married filing jointly status. (However, if the surviving spouse remarries before the year of death is over, then the deceased taxpayer's return must use the married filing separately status).

• If a person dies after the close of the tax year but before the return for that tax year was filed (for example, between January and March), the return for the tax year that was just closed won't be the final return. That return will be a regular one filed by the personal representative. The final return will be on next year’s tax return. 

• When filing a paper individual return, you should Write the word “DECEASED,” the decedent's name, and the date of death across the top of the tax return. The final income tax return is due at the same time the person’s return would have been due if they had not died. This means returns are typically due on April 15 following the year of death.

• You can try to e-file the Final tax return, but many times the return can be rejected due to the SSA locked their SSN due to getting notice of passing or the IRS is not accepting prior year AGI. If it is rejected, will have to print out and mail to IRS.

• If you are claiming a refund on behalf of a deceased taxpayer, you must file Form 1310 if

1. You are NOT a surviving spouse filing an original or amended joint return with the decedent; or

2. You are NOT a personal representative who has the court certificate showing your appointment.

• Turbo Tax will ask the non-representative to fill up Form 1310 after the return is done. (See example below.)

• In addition to filing a 1040, a personal representative may need to file a Form 1041 for the estate of the deceased person. To do this with TurboTax, the Business version will need to be downloaded to computer (not available for Mac or in TTO). 

• See IRS Publication 559 for additional information.

[DianeW777]

Full year resident.  You would indicate she lived in her state the whole year.  She was a resident from the beginning of the year until her death in June. All of her income would be taxable to her resident state on her final return.  There may be a question or filing status on the state return, however the date of death is entered into the Personal Info section for her federal return and will carry to the state return as well.

@FederalInquirer 

[FederalInquirer]

Thanks for the great explanation

[FederalInquirer]

Thank you!