Another 1099g after death Question.

[ducky911]

sorry as there was a similar thread but I am still not sure.

Dad died in 2021.
filed final personal and estate tax in 2022 for 2021.
received a state refund last june $3795
Just got a 1099g for him and his SSN for the refund.
I distribute all but 15 dollars of the estate.
He did itemize deductions on final 1040 taxes.

Hours of searching on the net have not been conclusive.

no state taxes owed

some say ignore it for the feds.

some say I have to claim it on an estate tax return only if I am filing for other reasons(which we are not)

Please help

I feel I have to do a estate tax return only for that amount.

Thanks

 

[cathy63]

He itemized (or you itemized for him) on his 2021 taxes, but did he actually benefit from deducting his state tax?

Look at his Schedule A for 2021.
- Is the box next to line 5a checked? If yes, then his state tax refund is not taxable.
- If the box is not checked, subtract $3795 from the number on line 5a and recalculate the rest of Sched A. The taxable amount is the difference between the old line 17 and the greater of the 2021 std deduction and the new line 17.

If you do this and decide that the taxable amount is greater than $600, then based on the previous discussion I think you do have to file a new 1041 and pay the tax.

 

[ducky911]

Thanks so much,

box was unchecked.....he did benefit from all of the $3795

so I will file a 1041 for the $3795 and pay what looks like 382 dollars tax from my account .

Best,

Bob