paying tax for deceased parent?
My mom cashed old bonds last year and didn’t take out taxes on it. She passed last year. Do I need to file for her? She received a 1099-INT from her bank (I’m on her bank account). My brother in law says we don’t need to file. I say we do and will need to pay federal taxes on interest made on the bonds. (we used the bonds for her caregiving expenses)
Terry Says
First of all, if she had been filing tax returns previously, you should file a “return for deceased.” This will close the books with the IRS. And it’s especially important if she is receiving a 1099 for the Savings Bonds she owned. Even if her total income for the year was too low to be required to file, it is a good idea to do so.
And double check to make sure she received two stimulus payments in 2021 — $600 and $1400. If she didn’t receive them, and was alive at yearend 2020, you can file to claim those credits as a refund!
You don’t have to file a state return, because the interest is not subject to state income tax.
