If you are like most people, when you lose someone you love, the last thing that is on your mind is what to do about paying taxes for that person. However, when tax season comes around, this is something that needs to be addressed and can leave those left behind wondering what to do about taxes that are owed. Mark Dicus & Company is here to talk about who is responsible for paying taxes after someone is deceased.
What Power Does an Executor of a Will Have?
Before someone passes away and they create a will, they will deem someone the executer. This person will be the one that carries out their last wishes and sorts out all the finances after someone dies. They are the person that handles the probate, identifies the assets, pays off debts and takes care of their final taxes owed. Once all of that is taken care of, the remainder of the assets are distributed to the remaining beneficiaries. If for some reason the estate cannot pay the amount owed to the federal income tax and state taxes, this will be paid before any of the other debts are taken care of.
How Do I File a Tax Return for a Deceased Person?
When taking care of taxes after someone has passed away, you will fill out one final Form 1040. Whoever is signing the form should also attach a Form 56 to show your relationship to this person. If you aren’t the widow or the widower and you are filing jointly, or if you haven’t been appointed the executer by the court, you will need to fill out Form 1310 in the case that you will be getting a refund.
How Do I File a 1040 for a Deceased Spouse?
In the case that someone is deceased, and their spouse is still alive, they can still file the Form 1040 jointly for that calendar year. If they get married before December 31st of that year it gets a little more complicated. In that case, the survived spouse will have to file using a married-filing-separate status. It is beneficial to be able to file a joint tax return because it usually puts you in a lower tax bracket and allows you to take advantage of special rules that are there just for those filing jointly. The final Form 1040 that you file for your loved one will be for January 1st thru the date that they passed. Without filing an extension, these taxes will be due at the same time as everyone else, April 15th. You will need to the word “deceased” with the person’s name and death date at the top.
Tax Preparation, Filing, Resolution & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have lost a loved one and don’t know how to move forward in filing their final taxes, you can rely on Mark Dicus & Company to help ensure you are getting everything done that is needed. Call us today!