Taxpayer Died Before Filing A Return? Steps Family Members Need To Take
If you have lost a loved on in the last year and are looking ahead to submitting your annual tax return, you may wonder if it’s possible to deduct any of the funeral expenses on your taxes. Unfortunately, the Internal Revenue Service (IRS) does not allow individuals to claim these expenses as deductions unless the funeral was paid for directly by the estate.
While you cannot claim funeral expenses as a deduction on your annual tax return, you should know, however, that you might be able to claim medical expenses that have been incurred during the year. You can generally claim medical expenses that are used to prevent or treat a medical illness or condition.
Tips for Deducting Expenses Related to a Family Member’s Death
While you cannot claim funeral expenses as an individual, it is possible to deduct these expenses if they were incurred as part of the deceased individual’s estate. The first and most important factor to confirm is whether the funeral expenses were in fact paid directly from the estate. If you are the executor of the estate and are preparing to file taxes, you should plan to use Form 706, which is called United States Estate (and Generation Skipping Transfer) Tax Return, to complete the calculation for estate’s tax liability. Then you can use Schedule J to report these funeral expenses to the IRS. One thing to keep in mind if you are in charge of an estate is that it may not make sense to take this deduction if the amount of the estate is less than the taxable amount.
Take the Stress Out of This Tax Season
As tax season approaches, you may have all kinds of questions about this year’s tax return and may already be concerned about how much you might owe. Partnering with a trustworthy, reputable and dependable tax firm can help answer your questions, solve any tax issues you may have, and ensure that you complete your return in a way that maximizes legal deductions and credits while minimizing what you will be required to pay to the IRS. The team at Success Tax Relief has more than 30 years of experience solving all types of tax issues including:
- General Tax Preparation (for individuals, businesses and estates)
- Audit Representation and support
- Negotiating A Reasonable Payment Plan with the IRS (including installment agreements, offer in compromise, etc.)
- Personal Credit Counseling
- Business Credit
Our experienced tax consultants understand that completing your own taxes can be difficult, stressful, and overwhelming. We can take this burden off of your shoulders and help you manage the process from start to finish, especially if you have suffered a death in your family. The customer care team at Success Tax Relief can review your tax documents, complete your annual return, review it with you and be there should the IRS have any questions. Call 877-825-1179 anytime, day or night, for more information. Do not suffer through tax season this year — Success Tax Relief can take the stress out of tax season.Contact us online today!