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The loss of a loved one, especially a close family member,
is one of the hardest things people have to go through. Unfortunately, though,
when a loved one does pass away, there are still practical and financial
matters that have to be considered, such as how to file taxes for that person.
Generally, an important rule to understand is that, when a
person dies, if any income for that person is going to be claimed, a final tax
return does have to filed. Typically, the person who will be required to do
that filing will be the executor or administrator of the deceased person’s
estate. If there isn’t one, then a loved one will need to do it by the regular
tax deadline.
If that responsibility falls on you, you will need to make a
note that your loved one is deceased after filling out the person’s name on the
tax return. Go ahead and claim any income received up to the date of death, as
well as tax deductions and credits that would have been claimed if the person
had not died. Basically, other than noting that the person has since passed on,
all other tax related matters, at least when it comes to filing the return,
stay the same.
Refunds may still be claimed on deceased persons taxes as well,
though a special form- IRS Form 1310, which is designed for this specific purpose-
must be used.
If you have any other questions or concerns related to
filing a return or other tax matters for the deceased, be sure to contact your
financial adviser. Obviously, this can be a sensitive and difficult issue, but
if you follow these tips and get professional help as needed, you can make it
easier to successfully file all required taxes during this difficult time.