Thala T. Rolnick, CPA, PLLC
Quality Tax Planning, Preparation and Assistance
Frequently Asked Questions
Q: What returns are required when a person passes away
A: Like most tax law, the answer is, it depends - upon the taxpayer's assets and income. The taxpayer must file a final tax return if their income is above the required filing requirement. A return is NOT required to be filed to let the IRS know that the taxpayer has passed away, the social security administration notifies the IRS.
Any income earned after the taxpayer passes away until up to one year after they pass away is reported on an estate return. A return is required if the gross income is over $600. If a beneficiary is a non-resident alien then a return is required regardless of the gross income.
The current estate tax exemption for individuals dying in 2011 and 2012. They can pass $5million tax free through a combination of lifetime gifting and inheritances. There are some special rules regarding the portability of unused exemption amounts.
If you are not sure of the required filing requirements, please contact me and I can help you sort things out.