When you are grieving the loss of a loved one, the last thing that you are thinking about is taxes. However, after someone dies taxes will still need to be filed for them one last time. There are a few variables that come into play when deciding who is responsible for filing the taxes of a deceased person. It is important that you know and understand what the process looks like so that you know how to proceed when you are in this kind of a situation. Mark Dicus & Company is here to talk about what is involved in the process of filing taxes one last time for someone who has passed away.
How Do You Do a Tax Return for a Deceased Person?
One of the first and most obvious questions that people have when they have to file taxes for a deceased person is who is responsible for doing it. Usually, the person that is responsible for filing is the executor of the estate or the broker that is managing the estate. However, if that person has a spouse, the spouse can file taxes jointly. There is no need to attach a death certificate to the taxes either. The only thing that needs to be done is the word “Deceased” needs to be put beside the person’s name. If you are filing on paper rather than online, you will put the date of death at the top of the paper.
Who Gets the Refund or Pays Owed Money
If there happens to be a refund that is involved, if the deceased person has a spouse it will go to the spouse. If that is not the case, the funds will more than likely go to the estate. If money is owed, the money will come out of the estate before the funds are released to the beneficiaries. If there isn’t enough money in the estate to pay the taxes, usually, the beneficiaries are not held responsible for paying it unless the lack of funds is due to the fact that the money was already dispersed.
How Filing Taxes for a Deceased Person Works for Those that are Remarried
Sometimes, a widower will end up getting remarried during the same calendar year as their spouse’s death. If this is the case, that person will not be able to file jointly with their deceased spouse, but will have the opportunity to file with their new spouse. If you don’t want to file jointly with your new spouse, you can always file married, filing separately instead.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have questions about how you should proceed with taxes after the death of a loved one, you can turn to Mark Dicus & Company to help you iron out all of the details and answer all of your questions. We are here to make this difficult transition as smooth as possible. Call us today!