|
December 1999
What
You Should Know About Income Tax When You Lose a Spouse
Uncertainty about income tax issues can add to
the stress experienced from the death of a spouse. You should meet
with your family attorney and/or tax advisor as soon as possible
to review your particular tax and estate circumstances. Before this
meeting, it's a good idea to order and read the Internal Revenue
Service (IRS) publications that are listed at the end of this article.
Bring a detailed list of your questions to the meeting. If you do
not have an attorney or tax advisor, call the IRS at 1-800-829-1040
for answers to specific tax questions.
Here is some basic information that you may find
helpful:
-- In most cases, it will not be necessary to
file a return with the Internal Revenue Service until your usual
filing date.
-- A surviving spouse can file a joint return
for the year of death and may qualify for special tax rates for
the next two years under certain conditions.
-- On the deceased's final income tax return,
you can claim any tax credits such as those for the elderly or disabled,
earned income credit, etc. that applied to the spouse before death.
It is usually not necessary to report on your
income tax return life insurance proceeds, supplemental security
income, veteran's benefits and welfare benefits as these payments
are not subject to income tax.
For more detailed information on income tax liability
after a spouse's death, contact the Internal Revenue Service at
1-800-829-3676 to order forms, instructions and publications or
visit the website: www.irs.ustreas.gov. To find out what services
are available, get Publication 910, Guide to Free Tax Services.
Publication 559, Survivors, Executors and Administrators
covers filing the final return for the decedent, what income to
include and other pertinent information such as filing due dates
and sample forms. Publication 575, Pension and Annuity Income
outlines special rules that apply to this type of income.
Having this information at hand can be very helpful
in overcoming any anxiety you may have about income tax issues after
a spouse's death.
back to top
|
