Death and Taxes: Filing a Final Tax Return for a Loved One

Picking up the pieces after a loved one passes away is difficult, compounded by the stress and grief associated with the loss itself.  One of the tasks you may face is preparing a final tax return for your deceased loved one’s estate.  At Schroeder Law Group in Hillsboro Ohio can help you navigate your responsibilities in settling your loved’s one’s affairs, whether you need to file in probate court or just need the advice and assistance of lawyers and attorneys who are experienced in estate planning and administration.

Do I need to file a Final Tax Return for a Deceased Person?

When someone passes away, their tax obligations don’t automatically end. The IRS requires a final tax return to account for the income earned up until the date of death. Known as the "final tax return for a deceased person," this filing is similar to a regular tax return but involves some key differences. Properly handling this process is essential to avoid future complications.

 Why Is Filing a Tax Return for a Deceased Loved One Necessary?

The IRS mandates that a tax return be filed for anyone who has passed away to account for their income and any taxes owed. If the deceased was entitled to a refund, filing the return is necessary to claim it. Failure to file could result in penalties or unresolved tax issues.

Where should I start?

Schroeder Law Group can help you find an experienced tax professional to prepare the final return.  Usually the best place to start is finding who prepared the deceased taxes in years past.  They will have a good handle on their financial picture and a lot of the information needed to prepare the deceased persons final return. 

 What Information do I need to gather?

Filing a tax return for someone who has passed away follows much of the same process as filing for any taxpayer, but there are specific steps to consider:

- Gather essential documents such as W-2s, 1099s, and other income records.

- Clearly mark "DECEASED" next to the individual’s name on the tax return to notify the IRS.

- Ensure all required forms are completed correctly.

 What Forms Are Needed to File a Final Tax Return?

The primary form required for filing is IRS Form 1040. Depending on the circumstances, additional forms may also be needed. For example:

- If claiming a refund on behalf of the deceased, Form 1310 (Claim for Refund Due a Deceased Taxpayer) may be required.

- Other forms might apply based on the complexity of the individual’s financial situation.

Tax Return are Due April 15th

The deadline for filing a final tax return is typically April 15th of the year following the individual’s death. If more time is needed, you can request an extension, which provides an additional six months. However, it’s important to note that any taxes owed must still be paid by the original deadline to avoid penalties or interest.

If Taxes are Owed, am I personally responsible?

If taxes are owed, they must be paid from the estate. The final tax return will determine how much is due, and it becomes the estate’s responsibility to settle this debt. Surviving family members are generally not personally liable unless there are insufficient funds in the estate.

Should I try to file on my own?

While it’s possible to handle this task independently, filing a final tax return can be complex—especially if the deceased had intricate financial affairs or if additional forms are required. Errors in filing could lead to delays or penalties from the IRS.

Working with qualified professionals along with Schroeder Law Group can save you time and stress while ensuring everything is done correctly. Our skilled team guides you through every step of this process so that you can navigate it with confidence and peace of mind.

As you take care of the affairs of your loved one, remember to prepare your estate so that your loved ones will not have a mess to clean up. Schroeder Law Group helps prepare strategic estate plans for clients from our Hillsboro, Ohio office, serving clients from nearby Mount Orab, Lynchburg, Georgetown, West Union, Washington Court House, Leesburg and Wilmington, Ohio.

Please schedule a strategy session for specific advice or go see another estate planning attorney.  The above information is provided for informational purposes and you should not make any decisions about estate planning or administration without consulting an attorney.

Schroeder Law Group helps clients with estate planning, probate, estate administration and other issues from their Hillsboro, Ohio offices. If you are looking for an attorney near me, Schroeder Law should be your first call!