The year a taxpayer dies, he or she must still file a tax return. Obviously, that chore falls to the taxpayer’s family or court-appointed representative. If you’ve found yourself in the position of having to file a tax return for a deceased taxpayer, it’s important to understand that a taxpayer’s final tax return can differ somewhat from a normal tax return.
For starters, there are often additional forms that must be completed. The most common tax returns for deceased taxpayers include Form 1041 and Form 706, in addition to the usual Form 1040. Income up to the date of death should be included, but most carryover credits, losses, and deductions cannot be included. Special rules apply to passive losses, foreign tax credit carryovers, and other situations. If the deceased taxpayer’s return claims a refund, Form 1310 should be filed in many, but not all, cases.
Not sure what to do when it comes to filing for a deceased love one? Pro Tax Resolution can help you understand the deceased taxpayer’s tax obligations and assist you in filing the decedent’s final tax return. Serving taxpayers across the San Antonio area, our specialists are available to assist you with the complicated and often emotionally charged task of tax filing for a deceased taxpayer. If you have any questions or concerns, please don’t hesitate to contact us today.