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This Washington State Probate Series blog is all about taxes after someone has passed away. The first part of the blog covers income tax and the second half is about estate tax. We have previously posted about estate tax and you can learn more about it by visiting the prior blog post here.
Washington State Probate Income Tax
Washington State Probate: Filing an income tax return for the year the decedent died.
The personal representative will most likely need to file an individual income tax return on behalf of the decedent for all income he or she earned from January 1 through the date of his or her death. This return will be due on April 15 of the following year.
Washington State Probate: Filing an estate income tax return.
The personal representative will most likely need to file an estate income tax return (known as a fiduciary income tax return, or Form 1041), for all income earned from the date of the decedent’s death through December 31 of the year he or she died. If the estate is not closed by the end of the calendar year, you may have to file an estate income tax return in the following year to report all income earned by the estate.
However, be sure to consult your attorney and/or tax professional because in many cases, income for the estate may be minimal. In that scenario, there is an IRS filing threshold and if the estate did not earn income in excess of that threshold, the estate will not be required to file an income tax return.
Washington State Probate: Filing income tax for prior years the Decedent did not file a tax return.
If the decedent did not file a tax return for the previous year(s), the personal representative will most likely need to file a tax return for all prior years in which the decedent did not file.
Washington State Probate Estate Tax Returns
Estate tax differs from income tax. We previously posted about estate tax, what it is and how it is calculated here. The current exemption amounts (as discussed below) are also found in the prior blog post.
Washington State Probate: Federal Estate Tax Returns
If the decedent’s taxable estate exceeds his or her available federal estate exemption amount, a federal estate tax return may need to filed. If a return is required, it must be filed within nine months from the date of the decedent’s death.
Washington State Probate: Washington State estate tax return
If the decedent’s estate exceeds $2,193,000 (2019), a Washington State estate tax return may be required. Similar to the federal return, if a Washington return is required, it must be filed within nine months from the date of the decedent’s death.
Good estate planning may alleviate some of the federal and Washington state estate tax an estate might have to pay. Contact Leos & Gilkerson, PLLC to learn more about estate planning to alleviate estate tax.
If you have questions on taxes after someone dies or estate taxes relating to probate, reach out to us.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only and should not be construed as legal advice from Leos & Gilkerson, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a licensed lawyer.