Filing Taxes for Deceased Relative

[4kids4karen]

A topic I don't really want to talk about so I will stick to some facts to help answer.

Deceased: Single, 24, never married, no children, no will, no joint accounts. Does not own property that needs to be claimed (only clothing and a personal computer). Recently moved back home but was paying a low monthly rent to parents. Vehicles (truck and motorcycle) both financed with secure loan that will be a voluntarily surrender back to bank. There will be some medical bills incurred as there was an ambulance, helicopter medical airlift, and ER surgery, but no one legally obligated to pay them.

Probate office couldn't advise if needed to go through probate. They did provide a legal service that charges $50 for a 30 minute call. Also advised under probate rules, value of truck and motorcycle (both with secure loans) would not fall under the small property, it would fall under the summary probate which is $1,000 to $75,000 in assets that would require a lawyer (if a probate process was necessary). Formal probate is for assets of $75,000 and higher.

Last year taxes, he had to pay the penalty for no health insurance. Still after penalty got maybe a $300 refund (not sure of exact amount). He has filed taxes on his own since age 18.

So the question is, will parents be able to file taxes on his behalf? Google searches keep saying whomever is deemed the executor of the estate from probate. But if parents do not go through probate process because there is no need to hire an attorney, etc. What will IRS Say? If tax adviser says parents can't file taxes because of lack of legal executor document and taxes go not filed, then what would be the penalty (if any)?

One bank already didn't want to talk to parents on motorcycle loan because no executor document received, but worked out where vehicle is going to be voluntarily repossessed because it was the vehicle the police had towed and tow company refused to release to parents without power of attorney, so tow company sent deceased a notice of auction that also went to the lien holder so lien holder will pick up before auction (as far as we know).

I just thought a few of you have already went through the process of a deceased family member and how the taxes work.

 

[meagarunt22]

Yes. I filed my dad's taxes very easily (he lived with me and very similar situation to yours). I used turbotax and didn't even have to provide the death certificate. They sent me the money.

 

[verleniahall]

i would talk to a lawyer

they usually do a free consultation

better than having legal problemsh

 

[Anthony1971]

The parents may still be responsible for the child... in most states the age of Majority is 18 but some states differ and that is if everything was under this persons name. Not an easy topic but the would want to file his taxes if nothing else they should consult with a local tax accountant and let everything else run its course so they do not find they have obligations they were unaware of. Again that is assuming everything was in that persons name with no cosigners for any type of debt.

 

[manning]

The parents may still be responsible for the child... in most states the age of Majority is 18 but some states differ and that is if everything was under this persons name. Not an easy topic but the would want to file his taxes if nothing else they should consult with a local tax accountant and let everything else run its course so they do not find they have obligations they were unaware of. Again that is assuming everything was in that persons name with no cosigners for any type of debt.

Be aware if no assets the parents are not liable money wise. The estate pays all bills to extent the estate is able to. When everything is depleted balance debt is forgiven.

Hope their is no co-signs.

Could be wrong just putting this out there to be aware of what to ask.

 

[Claire&TheBoys]

If he worked and would expect a refund back, then his parents can file for him and get the refund. There's a form to fill out (don't remember off the top of my head what the form number is) that gives several different filing scenarios: filing as appointed by the court, etc. They'll have to provide their SSN and such. I did a couple of deceased returns this tax season and getting all the proper documentation for our records was kind of a pain, but the filing wasn't too bad. Being that I work for a CPA, I always recommend having your taxes done by a professional if you have any type of complication. I would definitely put this in that category.

 

[4kids4karen]

Absolutely no co-signers. The only "joint" account was his checking account w/ mom. When he got his truck, dealership wanted mom to co-sign, but she did write a check for a few thousand down payment for son so they would finance him on his own. He has since repaid mom.

This is what I know:
- There is positive equity in his truck, so if mom did decide to keep the truck, mom may be legally obligated to pay the positive equity to the estate.
- If there is a tax refund, that may legally go to the estate (I am double checking on this). Mom doesn't care about a refund, just trying to close everything out.
- He had employer health insurance this year.
- He was full-time employed at worked a full-shift on the date of his death.

 

[supersnoop]

The laws vary by state. Sometimes, the best thing you can do is pay for a lawyer and funeral expenses. Those typically come out of the estate before anyone else gets paid.

 

[tvguy]

IRS site doesn't say who has to file it. I suspect they don't care who files it, as long as it is filed.
https://www.irs.gov/businesses/smal...ling-the-final-returns-of-a-deceased-taxpayer

 

[seashoreCM]

The tax refund goes to the estate.

If there are assets then probate must be gone through.

The parents are not obligated to be executor(s) but if they start being executor then they must finish..

It is not obligatory to have an attorney to go through probate.

 

[lost*in*cyberspace]

The parents may still be responsible for the child... in most states the age of Majority is 18 but some states differ and that is if everything was under this persons name. Not an easy topic but the would want to file his taxes if nothing else they should consult with a local tax accountant and let everything else run its course so they do not find they have obligations they were unaware of. Again that is assuming everything was in that persons name with no cosigners for any type of debt.

Not for a 24 year old. The parents have no responsibility.