Many responsibilities come with acting as someone’s estate executor. Illinois residents who are tasked with executing an individual’s estate after that person’s death should be aware of the tax issues that must be resolved. One of these issues is filing a final tax return for the deceased, which is not the same as the estate tax return. Understanding how to file these tax returns can help one prevent legal or financial ramifications impacting the estate.
Filing an estate tax return
After someone dies, their assets are part of their estate, which must be dealt with by the executor. If the estate has earned income, a tax return must be filed based on that income. Assets that are often included in an estate like bonds, CDs, mutual funds, rental properties, savings accounts, and stocks may earn income and should be considered when filing an estate tax return.
To file an estate tax return, the executor must have a tax identification number for the estate. The executor can apply for this number using the IRS website or by fax or mail. Once this number is received, it can be used to file relevant tax documents.
Questions about estate tax returns
Filing an estate tax return is an important task for an Illinois estate executor. Filing this return in a timely manner ensures that the funds in the estate are not subject to late fees or other penalties. Those who have questions or concerns about how to complete this process, or any other tax-related issues, can benefit from a consultation with a professional who understands the state’s tax laws.
