Discussion:Final return for soldier killed in action

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Discussion Forum Index --> Tax Questions --> Final return for soldier killed in action


Death&Taxes (talk|edits) said:

3 November 2006
My friend, a probate attorney in Philly, asks this:

"I am representing the administrator of the estate of a young man who was killed in Iraq. An accountant told the widow, who is my client, that the decedent did not have to file Federal and State income tax returns for the year of the decedent's death. I am pretty sure that the decedent's estate need not file a Pennsylvania income tax return, but wouldn't the estate have to file a final lifetime income tax return for Federal income tax purposes?"

Assuming he had no Federal tax withheld before he shipped out, is this correct?

By the way, I am trying to get him to post here.

Tfortaxes (talk|edits) said:

3 November 2006
You must file both a federal and state return. Even if there is no withholding and no refund or tax owed. You check the deceased box or/if none write deceased at the top of the return. On the Fed return there is a request for the date of death. I don't know about the state return. But make it clear that the taxpayer is no longer living. This notifies both the feds and the state the taxpayer has died. Just because a death certificate has been issued it does not automatically tell all the different agencies that.

Dennis (talk|edits) said:

3 November 2006
If a member of the U.S. Armed Forces dies while in active service in a combat zone or from wounds, disease, or other injury received in a combat zone, the decedent's income tax liability is forgiven for the tax year in which death occurred and for any earlier tax year ending on or after the first day the member served in a combat zone in active service. (Forgiven tax is tax that does not have to be paid.) Any forgiven tax liability that has already been paid will be refunded, and any unpaid tax liability at the date of death will be forgiven. Publication 3

Death&Taxes (talk|edits) said:

3 November 2006
Thank you, Dennis.

Taocpa (talk|edits) said:

2013-02-15
Bringing this thread back due to a question:

My friend's son was KIA in Afghanistan last year. He asked me to help him file final returns. I understand what I read in Publication 3 about the tax liability being forgiven.

My question is: does this mean the entire tax liability is refunded? I doubt he had withholding and I am trying to ascertain that, however my friend is confused as to what this means.

Any light that can be shed on this is greatly appreciated.

Tom

Ckenefick (talk|edits) said:

15 February 2013
It means he has a $0 tax liabilty for 2012.

Taocpa (talk|edits) said:

2013-02-15
That's what I thought, Chris.

I've never done one of these returns, so I just had to ask.

Tom

Ckenefick (talk|edits) said:

15 February 2013
...and I believe he can get it all back for 2011 also (I'm assuming his injury and death occured in the same year, or 2012).

Norman-tx (talk|edits) said:

15 February 2013
See ยง692.

http://www.law.cornell.edu/uscode/text/26/692

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