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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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My father died Nov, 2008 do we need to file a 2008 income tax

Customer Question

My father died Nov, 2008 do we need to file a 2008 income tax? Also he left everything in a living trust everything was tax exempt now I received a death benefit and it states I'll receive a 1099-R will I pay taxes on this?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello chloe,

Yes, you will need to file a final return on behalf of your father. you will report any income and expenses that he had during the year, just the same as he would have if he had filed his own return. On the top of the return, you should write "Deceased", followed by the date of death. You may sign the return as his personal representative.

If your father is due a refund for the year, you should also attach Form 1310 to claim the refund on his behalf.

If the money that you inherited from your father was in a tax exempt account, then as the beneficiary of this account you will have to pay income taxes on your own personal return for the amount reported to you on the 1099-R form.

If there were other assets such as a home, or cash in a regular savings account that was not tax deferred, then you owe no income taxes on those types of assets.

If your father's entire estate was valued at more than the allowed exemption amount for 2008 (which was $2 million), then an estate tax return would also need to be filed. Estates valued at less than $2 million in 2008 are not required to file an estate tax return.

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Thank you.
Customer: replied 8 years ago.
what is a 1099R form? and since he died in 08 but the check was made out in 09 what year do I pay on it for?
Expert:  Merlo replied 8 years ago.
Hello chloe,

A 1099-R form is used to report distributions made from a retirement account. It could be from an employer retirement account or an IRA account or any type of retirement account.

If the payment was not actually made to you until the year 2009, then that should be the year you receive the 1099-R form and the year you pay the taxes. It goes by when you actually receive the money, not when your father passed away.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.