I called Jackson Hewitt who told me that there is no need to file taxes for my deceased father if the only income he received for the year was his Social Security. My husband reminded me last night that early in the year my father had withdrawn $10,000 from an investment account and that would be considered taxable income. But isn't the rule that if your income is less than 12k a year you don't file taxes? Sooooo.... Am I suppose to file a return for him or not?
2007-12-12 01:41:44 · 6 answers · asked by ChrisbeesMama 1 in Business & Finance ➔ Taxes ➔ United States
No tax was withheld
2007-12-12 07:27:37 · update #1
Wanye Z might have referenced last years requirements or assumed that your father was under the age of 65. For 2007 if he was single and over the age of 65 the requirement to file is $10,050. He doesn't have to file if he has any other filing status (except single filing separate). Go to page 6 of the following link for 1040 instructions and look at Chart A. It is pretty clearly defined that he probably won't have any filing requirement.
Additionally, the asterisked portion at the bottom of the same chart clearly states that you do not include SSA benefits as part of gross income (if you had any doubt).
I must have missed the modified section that WayneZ wrote. He is also right about filing a return if he had taxes withheld.
Additional detail respone - You don't have anything to report then.
2007-12-12 02:08:40 · answer #1 · answered by Griffin 4 · 1⤊ 1⤋
If your father was over 65 there will definitely be no tax due on $10,000 from an investment account. A question for you though: Was there any income tax withheld from his withdrawal? If so, you will need to file a return to get it refunded.
2007-12-12 03:49:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The life insurance goes to you as a beneficiary and is not normally taxable. Any other assets that your father had at the time of his passing are those of his estate his "estate" regardless of any formal arrangement that he may have had. The 401K may have been left to you as a beneficiary but any opinion I would have is only a guess as I have not reviewed that paperwork. Any other assets remain in your fathers estate. If there was no formal arrangement like a will or trust things will get a little complicated. Having been the beneficiary if his insurance policy does not make you responsible for any thing. If you were the beneficiary of his 401K that does not make you responsible for his estate or any debts the estate may have. If you are the executor or trustee for his estate you should have agreed to that at some point before his passing. You would be well advised to seek the advise of a professional before you do anything.
2016-05-23 05:09:47 · answer #3 · answered by ? 3 · 0⤊ 0⤋
1) Sorry for your loss.
2) Never call Jackson Hewitt for anything.
3) If your father was unmarried at the time of his death, the $10,000 would put him over the filing requirement for 2007. The social security may or may not be taxable depending on the rest of his income.
If there were any taxes withheld on the $10k, I would definitely file a return. You may be able to get some of that back. You will need to wait until you receive the 1099R from the investment company to see.
2007-12-12 01:54:29 · answer #4 · answered by Wayne Z 7 · 5⤊ 4⤋
Best to file one anyone, That way if somme thing else comes up, all you have to do is file an adjustment.
2007-12-12 01:55:04 · answer #5 · answered by THE Cupid HATER 7 · 0⤊ 1⤋
No, you do not have to file. If you have questions, call the IRS. Better to hear it from them than us. Make sure you get the name and number of the person that gives you the info.
2007-12-12 01:51:06 · answer #6 · answered by mrsdeli 6 · 2⤊ 3⤋