My mother died in November 2011. My father's been dead for 13 years. April 15 is coming and I have no idea what to do (or if I should) file federal and/or state income taxes for my mother. She lived in a NH for all of 2011 until she died and her money was spent down on the monthly rent, but there was some money left when she died, which went to me, POD. There was no real estate.
My husband has always done our taxes and, for the past 5 years, my mother's. He's getting nervous about doing hers this year but we don't want to go to H&R Block or anything. I'm hoping it will be fairly simple. Do we need a special form? Her money did generate some interest, so if she actually owes taxes, do we have to pay it?
Any advice or information is very much appreciated. We're in NJ.
Thank you
Tax possibly owed on interest (depends on amount).What money she had at time of death will 1st go to pay her outstanding debts, then to you. Hold on to money you received until her debts (including taxes) are paid.
Any good CPA is a better risk to use for preparing your return! They have professional standards and licensing to maintain. Most CPA's are qualified to prepare most individual 1040s. They tend to understand the language of the IRS, too. H&R Block makes plenty of mistakes...don't assume.
In my mom's and late MIL state, they have VITA - Volunteer Income Tax Assistance program. In my mom's city it's a United Way/Catholic Charities and University Law school joint program. The volunteers are trained. It's free.
AARP sites don't handle anything complicated. VITA site does but only at the law school. Both require ID's and prior returns and DPOA or executor paperwork.
My MIL died last year and we are doing her taxes, it's a good idea to have the taxes done to present to probate to show there is no IRS debt or other liens. I went to an AARP location first and they sent me to the VITAS law school site as she had 1099-C's (cancellation of debt) and don't do those. Good luck.
I'm still here - thanks for your answer. My brother and I were co-executors. Her bank account was not a joint one, it was in her name only, with Payable upon Death to myself and my brother. It earned some interest in 2011, so I figured she would owe something. I guess that'll have to come out of the inheritance. My husband will be calling the IRS - thanks to everyone who suggested that. The reason he (and I) don't want to go to H&R Block is simple: they charge money. We may end up having to spend some on a CPA anyway if this all gets too complicated, but her estate was so simple, I'm hoping we'll be able to figure it all out.
For example, how much money did she leave you and is it exempt from inheritance tax? I'm not a tax person, but if your husband is nervous, then there must be a reason. Get some professional guidance.
Good luck and God Bless you. I hope it all works out and is simple.
You will file return just as if Dad was still here - just put "deceased" at top of front page on 1040 Form.
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