Filing Income Tax for a Deceased Parent: Ten Helpful Tips

Difficult time…

The loss of a parent is without a doubt extremely difficult. Having to deal with paperwork on top of the loss, such as filing income tax for a deceased parent, can add more stress. This is particularly true for people who are unfamiliar with a parent’s financial affairs and need to file past and present returns.

Ten helpful tips

If one must file an income tax on behalf of a deceased parent, there are ten helpful tips to know:

• The IRS generally expects responsible parties to file income tax return(s) for the deceased person. All income up to the date of death must be reported.
• The filing of a deceased parent’s final return usually falls to the executor or administrator of the estate. Said persons are generally named in a will or are court appointed.
• The executor is tasked with following the wishes of the deceased.
• If the taxpayer was married, the spouse who has not remarried can file a joint return for the year of the death, using the full standard deduction and joint-return rates.
• If there is no spouse and no one is named to handle affairs, a court appointed person will be named. This may sometimes be the child (closest heir) of the deceased.
• If deceased parent has not filed an individual income tax return for the years prior to the year of their death, past returns may also have to be filed.
• It is the responsibility of the person legally in charge of the decedent’s affairs to pay any balance due and to submit a claim if there’s a refund.
• To verify non-filing status and to obtain certain income documents of the deceased parent, submit Form 4506-T to the IRS. This form is entitled Request for Transcript of Tax Return.
• If one is in over their head when it comes to taxes, do lean on the expertise and experience of a tax professional or trusted financial planner, such as a CPA, or certified public accountant. 
• Check out IRS Publication 559, entitled Survivors, Executors, and Administrators, to help those managing income tax affairs through the income tax filing process.

Easing the task…

Filing income tax for a deceased parent is a daunting task. Authorization to file, knowledge of the decedent’s financial affairs, and understanding how to handle complicated accounting are some complications one may incur. Keeping oneself grounded, knowing one’s rights and duties, and following through are important steps to filing and preparing a final return on behalf of a deceased parent. Should questions for the Internal Revenue Service arise, the IRS website is your best resource. Or visit Amac’s  related article entitled  Filing taxes for a deceased parent.

This article is purely informational and is not intended as a substitute for professional advice.