Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

My dad passed away last June. Do I have to file income tax…

My dad passed away...

My dad passed away last June. Do I have to file income tax for him before June and for his estate after his death?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Must I file two sets of income taxes for my deceased father, one for before he passed and one for his estate?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I don't think so. Ask me something more specific. I have no idea what might be pertinent. He had income from his pension and my deceased mom's pension also.

Show More
Show Less
Ask Your Own Finance Question
Answered in 4 minutes by:
1/22/2018
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,333
Experience: Personal Investment, Tax Preparation
Verified

Please accept my deepest condolences for your family's loss.

You have correct understanding - all income the deceased received before the death is reported on the FINAL individual tax return - form 1040.

but all income received in respect of the deceased (IRD - income in respect of the deceased) AFTER the death is reported to the estate - form 1041 and may be passed to beneficiaries.

The due dates are same for both tax returns - for 2017 - that is Apr 17, 2018.

Let me know if you need any help with reporting,

Ask Your Own Finance Question
Customer reply replied 6 months ago
Thank you! I have the 1041 form. My only other question is, how complicated is the filing? Would you recommend I turn it over to a professional or should I be able to do it myself?

In general - especially if there are only a few income items - you may prepare both tax returns on your own.

But in any case - it is recommended to have your calculations to be verified by a professional.

If however - you do not feel comfortable - it might be better to turn all paperwork to the tax preparer.

We still have some time before the deadline - so no rush.

Following publication - you might find it helpful - covers most aspects of filing

https://www.irs.gov/pub/irs-pdf/p559.pdf

There are separate chapters for Final Income Tax Return for Decedent—Form 1040

and for Income Tax Return of an Estate — Form 1041

You are welcome back with all your questions.

Ask Your Own Finance Question
Customer reply replied 6 months ago
Thanks so much for your help! I will let you know if I have any more questions.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all Social Security / Tax related issues.

Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,333
Experience: Personal Investment, Tax Preparation
Verified
Lev and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 6 months ago
Are you still there Lev?

Yes - I am here.

Ask Your Own Finance Question
Customer reply replied 6 months ago
Phew!! I'm working on Form 56 and am almost finished. The form is asking for the docket number of proceeding. The only number I can find on any of the documents is an estate number. What do I do???
Customer reply replied 6 months ago
The only Doc ID I find is concerning an affidavit as to matters of title. I assumed the proceeding they are asking about is my receiving my letters testamentary.

In most situation - form 56 is not required.
Based on your information I do not think you need to file this form.

Just start with the FINAL tax return for the decedent - form 1040.
After it is completed - we may move to 1041.

Ask Your Own Finance Question
Customer reply replied 6 months ago
Well, one less form is good! Thank you!!!
Customer reply replied 6 months ago
Good morning Lev.
I have, indeed, moved on to Form 1041 and have more questions that I hope you can answer.
Fist of all, as far as I can tell, the only income Dad's estate had is interest on his life insurance policy. None of the other lines seem to apply. Then we come to line 8 that says "other income". What on earth could that be????
Customer reply replied 6 months ago
Would that include the life insurance payout?

Yes - interest on the policy is taxable income.

Interest credited before the death is reported on the final tax return - not on 1041.

So most likely - you will have very little or no interest on 1041.

The life insurance proceeds paid because of the death are NOT taxable and not reported on 1041.

Ask Your Own Finance Question
Customer reply replied 6 months ago
Okay. What about the fee for the probate attorney? Is that deductible on line 14? The instructions skipped that one.

Yes - legal expenses paid by the estate are deducted here - including probate expenses.

These are normally deducted on line 12.

Ask Your Own Finance Question
Customer reply replied 6 months ago
Looks like the taxable income is zero. Is that unusual? The next line is Total Tax (from Schedule G, line 7). I looked that up and it's about expenses incurred for food and beverages. There must be another schedule G.

Not unusual for small estates.

Schedule G is used to calculate tax liability - but if taxable income is zero - there is nothing to calculate.

Schedule G is on the second page

https://www.irs.gov/pub/irs-pdf/f1041.pdf

There is nothing specifically regarding food and beverages - I think you are looking into a different place...

Ask Your Own Finance Question
Customer reply replied 6 months ago
That's the second time today I've been a little dim. That's as far as I've gotten on form 1041. I'll let you know if I have any more questions. Thanks Lev!
Customer reply replied 6 months ago
Good morning Lev!! I think I just have one last question for you. The estate had no income except interest on an insurance policy. Deductions for the probate attorney and property taxes. There is a $600 exemption allowed. Everything else is zero. It looks like I have no need for the page with Schedules A, B, and G. Can it really be that simple?

Yes - that is possible for simple situations like yours

If taxable income is zero - no need to calculate tax liability - and leave schedule G blank.

If there is no charitable contributions - leave schedule A blank

If there is no distributions to beneficiaries - leave schedule B blank

Ask Your Own Finance Question
Customer reply replied 6 months ago
Lots of zeros! I was making it more complicated that it really was. No tax due and no refund expected. Should I include a copy of Dad's death certificate and/ or my letters testamentary with the returns?

That is not required.

Form 56 is used to notify the IRS of the creation or termination of a fiduciary relationship under section 6903 and provide the qualification for the fiduciary relationship under section 6036

You may attach that form to final 1041

https://www.irs.gov/pub/irs-pdf/f56.pdf

Ask Your Own Finance Question
Customer reply replied 6 months ago
Then I think our work here is done!! Thank you so much for your help. I rated you after our first session. Should I rate you again? Cause you have earned many gold stars!

You may - but that will not change anything as the question was already rated.

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,333
33,333 Satisfied Customers
Experience: Personal Investment, Tax Preparation

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
My dad passed last June. He gave everything away, including
My dad passed last June. He gave everything away, including the house and it's contents ( quick title claim) and vehicles before he did. Am I responsible to pay his taxes. … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,607 satisfied customers
Does this service has a cost? My father has an investment
My father has an investment account, and he wishes to transfer cash funds to our joint investment account. I am primary account holder in the destination account. Would I be subject to income tax, because I'm receiving funds in out joint account? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
You may remember that I contacted you regarding my mom's
Hi Steve; You may remember that I contacted you regarding my mom's trust at the end of March. She and my dad purchased a property in Lake Tahoe utilizing a 1031 Exchange for a property they sold in Mo… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
My father and mother were joint filers. My father passed away
My father and mother were joint filers. My father passed away in 2014. My mother filed a "married filing jointly" tax return for 2014, and that return including a net rental property passive loss from… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
My dad passed away last year and my stepmom now gets 1/2 s
My dad passed away last year and my stepmom now gets 1/2 his VA pension. (about 1500.00/month) She is too young for SS so my stepmom is about to transition from housewife to the workforce. She has not… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
My dad lives with my sister and her son in NY. He has been
My dad lives with my sister and her son in NY. He has been living with her since my mom died 8 years ago. He is 83 with some dementia. They live in his house, but half of the house is in her name. She… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
My mother pass away feb. 20, 2012. My father and mother were
My mother pass away feb. 20, 2012. My father and mother were both receiving social security . My mother was getting around $600.00 a month. My parents were married for over 50 years, and living on bot… read more
winktax
winktax
Enrolled Agent
Master's Degree
349 satisfied customers
I am the executrix for my uncles estate and need to determine
I am the executrix for my uncle's estate and need to determine his federal income tax filing status for 2011. He passed away in on June 26, 2011. At the time of his death he would have been eligible t… read more
R. Klein, EA
R. Klein, EA
Accountant
Master's Degree
480 satisfied customers
My younger brother (54) has debts which hes been gradually
My younger brother (54) has debts which he's been gradually paying off for a number of years. He has no savings and is on a low wage. My father (88) wants to to help him prepare for his retirement as … read more
sgriffin26
sgriffin26
Senior Loan Officer/ NMLO
Bachelor's Degree
92 satisfied customers
My father and i both inhereted about 165K from my late uncle
My father and i both inhereted about 165K from my late uncle ....previous year, my aunt's estate sent disbursment and there was no or little tax liablity, but now we're told they didnt take any taxes … read more
R. Klein, EA
R. Klein, EA
Accountant
Master's Degree
480 satisfied customers
Citibank is depositing some kind of pension funds to a Chase
Citibank is depositing some kind of pension funds to a Chase account my parents have. My father passed away in March, I'm his son, looking thru finances and Chase doesn't know where it's from. Citiban… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
My father is currently in a nursing home after breaking his
My father is currently in a nursing home after breaking his hip. They are planning on releasing him the first of December but he must go home with 24/7 care. In order to afford that kind of care we wo… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
332 satisfied customers
My father passed away recently leaving credit card debt on
My father passed away recently leaving credit card debt on cards that are solely in his name or ones that my Mom was only a authorized user on the account. I read the answer posted here to the questio… read more
Lev
Lev
Tax Preparer
Bachelor's Degree Equivalent
33,333 satisfied customers
My dad passed away in September 2008 and I need to know how
My dad passed away in September 2008 and I need to know how I would go about filing his taxes for 2008? My mom passed away several years ago.… read more
Dennis M. Smith
Dennis M. Smith
Retired
Bachelor Degree
1,293 satisfied customers
MY PARENTS DIED IN 2007. MOM 12.02.07 DAD 12.22.07. I AM THE
MY PARENTS DIED IN 2007. MOM 12.02.07 DAD 12.22.07. I AM THE SECONDARY BENEFICIARY ON MY MOMS IRA. BECAUSE MY DAD DIED AFTER MY MOM. THE BANK IS SAYING I CANNOT SET UP A BENFICIARY IRA. THAT THE MONEY… read more
Lev
Lev
Tax Preparer
Bachelor's Degree Equivalent
33,333 satisfied customers
I currently have stock certificates in my fathers name and
I currently have stock certificates in my father's name and mine as Joint Tennants. After his passing, will the cost basis for the sale of stock to determine capital gains be determined: at the time t… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Mother recently deceased. Small estate, finances in mutual
Mother recently deceased. Small estate, finances in mutual funds losing prox 20,000/mo. Broker says "wait it'll come back. Let the estate take the hit". Do we need to liquidate before year end, or let… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
my father just passed away and my mother is disabled ...
my father just passed away and my mother is disabled (stroke victim)what kind of help is there out there for money and helping to pay off my fathers unpaid bills / we are unsure if he had life insuran… read more
Karel1
Karel1
Certified Respiratory Therapist
Associate Degree
56 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x