Mom passed away in July of 2018 and was an IN resident. She was widowed, 72 years of age and had received less than $14,000 in SS benefits when she passed. She had no investments, no interest earned in 2018 and no other income in 2018. She did sell her home before her death and used her very small profit to pay for a few months of assisted living care and other medical expenses. There was no estate when she died.
After I reviewed Moms 2018 SS 1099 and completed the accompanying worksheet on the backside of it, it appears that I do not need to file a 2018 Federal form for her.
Am I correct in thinking that I don’t need to file a 2018 Federal tax return for Mom?
When I review the IN state tax form it indicates that I need to enter info from her 2018 Federal Tax form and since it appears that I don’t need to complete a Federal form…I am confused. I also read on the IN tax site that there is a $2,000 income minimum for someone over the age of 65 and since Mom was 72 it sounds like I might need to file an IN form for her. Not sure what to do here...
I don't live in Indiana but have phoned a few different tax places and they tell me I probably don't need to do anything but I fear I could get in trouble if I don't? I feel if nothing else I probably should file a IN tax return but the form would be mostly zeros.
Any advice or guidance is deeply appreciated. Thank you so much...
Yes. According to the Indiana Department of Revenue, you are required to file an Indiana state tax return, if your deceased mother's income is more than $2,000 for the taxable year.
I have included a link that provides additional information regarding the preparation of the Indiana tax return: Deceased Taxpayer
If your mother's income from all sources in 2018 is less than her filing threshold ($13,600), then it is suggested that you should file a federal tax return to close out her filing requirements. You will indicate on the return that she is deceased and provide the date of death. The TurboTax program will ask you to input the information.
Please ensure that you keep a record of her death certificate in the event that the federal or state may ask for it. In addition, if you haven't done so, you should inform the Social Security Administration that your mother is deceased.