A caring solution to help you plan for the future and settle affairs after a loss.
File final taxes
You may have to file six types of taxes on your loved one’s behalf. Look into each of these tax situations, and if you feel like you need help, you may want to involve the expertise of a tax attorney. We can help you locate one by clicking here.
1) Federal and State Income Taxes:
Decedent’s individual income should be filed through IRS Form 1040 federal income tax return
Income earned by the estate or trust should be reported on IRS Form 1041
See your state-specific forms
2) Federal Estate Taxes:
As of 2019, if an estate is valued at $11.4 million or more, a federal estate tax return should be filed using IRS Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return.
A nonresident/citizen decedent uses IRS Form 706-NA.
The exemption will be adjusted on January 1st of each year according to inflation
3) State estate taxes
Residents of the following states have state estate taxes: Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Tennessee, Vermont, and Washington.
The estate value that triggers the tax varies by state.
4) State inheritance taxes
Beneficiaries who live in Iowa, Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania have to pay a state inheritance tax.
Surviving spouses and charities are exempt.
In Iowa, Kentucky, Maryland, and New Jersey, children and grandchildren are also exempt.