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Filing 2019 Joint for my parents - Spouse passed 2020 - Any action on 2019 needed?

Forum|Forum|5 years ago
June 30, 2020
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My parents file jointly. I'm using TT for 2019. My dad passed in 2020. Is there anything on the 2019 that I need to watch out for?

And, is there something for 2020 I need to do to make sure my mom gets to add my dad's lifetime exemption to her's? I think it's called "portability" perhaps? Google search reveals:

Portability must be irrevocably elected on a timely filed (including extensions) estate tax return, even if a return is not otherwise required to be filed.

Thannks in advance.

Best answer by CatinaT1

First, I'm sorry for your loss.

When you file their 2019 return, you will want to be sure to say that he is deceased, even though he didn't pass until 2020.

For their 2020 return, they can still file jointly regardless of if he had income or not.

The Portability you are referring to is an Estate Tax issue and regarding gift tax.

In order to elect portability of the decedent's unused exclusion amount (deceased spousal unused exclusion (DSUE) amount) for the benefit of the surviving spouse, the estate's representative must file an estate tax return (Form 706) and the return must be filed timely.

This IRS may provide you additional insight: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes