Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Where To File 2012 Tax Return

Free State Tax Online2011 Irs Forms And Publications2006 Tax Software Free DownloadHow To File 2011 Taxes For Free1040ez Instruction BookFile 1040 Ez1040 Ez Form 2014Tax Forms For 2012Need To File 2012 Taxes Late1040 Ez Instructions 20122011 Federal 1040ez FormTaxes MilitaryFiling Tax ReturnFree Turbo Tax 2013 DownloadEz Tax ReturnFile Free State Taxes OnlineFile A Free State Tax Return1040ez Tax TableTax AmendmentsTax Amendment Form 20101040 EasyWww Irs Gov Form1040ezAmended Tax Forms1040ez Tax Forms Downloads2010 1040 Ez FormFiling 2010 Taxes Late Online FreeFree Amended Tax ReturnFree Tax Filing Online For Military1040x Form And InstructionsIncome Tax Forms For 2012File 2012 State TaxesTurbo Tax 1040ezPrior TaxFree State Tax PreparationState Tax For Free2011 Tax Forms 10402011 Tax Form 1040Tax Software 20111040 Us Individual Income Tax Return 2012Taxes Online

Where To File 2012 Tax Return

Where to file 2012 tax return 20. Where to file 2012 tax return   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. Where to file 2012 tax return Married persons who filed separate returns. Where to file 2012 tax return What's New Standard deduction increased. Where to file 2012 tax return  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. Where to file 2012 tax return The amount depends on your filing status. Where to file 2012 tax return You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. Where to file 2012 tax return Introduction This chapter discusses the following topics. Where to file 2012 tax return How to figure the amount of your standard deduction. Where to file 2012 tax return The standard deduction for dependents. Where to file 2012 tax return Who should itemize deductions. Where to file 2012 tax return Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. Where to file 2012 tax return If you have a choice, you can use the method that gives you the lower tax. Where to file 2012 tax return The standard deduction is a dollar amount that reduces your taxable income. Where to file 2012 tax return It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). Where to file 2012 tax return The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. Where to file 2012 tax return You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. Where to file 2012 tax return Persons not eligible for the standard deduction. Where to file 2012 tax return   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. Where to file 2012 tax return You are considered a dual-status alien if you were both a nonresident and resident alien during the year. Where to file 2012 tax return Note. Where to file 2012 tax return If you are a nonresident alien who is married to a U. Where to file 2012 tax return S. Where to file 2012 tax return citizen or resident alien at the end of the year, you can choose to be treated as a U. Where to file 2012 tax return S. Where to file 2012 tax return resident. Where to file 2012 tax return (See Publication 519, U. Where to file 2012 tax return S. Where to file 2012 tax return Tax Guide for Aliens. Where to file 2012 tax return ) If you make this choice, you can take the standard deduction. Where to file 2012 tax return If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. Where to file 2012 tax return See Standard Deduction for Dependents, later. Where to file 2012 tax return Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Where to file 2012 tax return Generally, the standard deduction amounts are adjusted each year for inflation. Where to file 2012 tax return The standard deduction amounts for most people are shown in Table 20-1. Where to file 2012 tax return Decedent's final return. Where to file 2012 tax return   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. Where to file 2012 tax return However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. Where to file 2012 tax return Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. Where to file 2012 tax return You are considered 65 on the day before your 65th birthday. Where to file 2012 tax return Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. Where to file 2012 tax return Use Table 20-2 to figure the standard deduction amount. Where to file 2012 tax return Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. Where to file 2012 tax return Not totally blind. Where to file 2012 tax return   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. Where to file 2012 tax return   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. Where to file 2012 tax return You must keep the statement in your records. Where to file 2012 tax return   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. Where to file 2012 tax return Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. Where to file 2012 tax return You cannot claim the higher standard deduction for an individual other than yourself and your spouse. Where to file 2012 tax return Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. Where to file 2012 tax return Example 1. Where to file 2012 tax return Larry, 46, and Donna, 33, are filing a joint return for 2013. Where to file 2012 tax return Neither is blind, and neither can be claimed as a dependent. Where to file 2012 tax return They decide not to itemize their deductions. Where to file 2012 tax return They use Table 20-1. Where to file 2012 tax return Their standard deduction is $12,200. Where to file 2012 tax return Example 2. Where to file 2012 tax return The facts are the same as in Example 1 except that Larry is blind at the end of 2013. Where to file 2012 tax return Larry and Donna use Table 20-2. Where to file 2012 tax return Their standard deduction is $13,400. Where to file 2012 tax return Example 3. Where to file 2012 tax return Bill and Lisa are filing a joint return for 2013. Where to file 2012 tax return Both are over age 65. Where to file 2012 tax return Neither is blind, and neither can be claimed as a dependent. Where to file 2012 tax return If they do not itemize deductions, they use Table 20-2. Where to file 2012 tax return Their standard deduction is $14,600. Where to file 2012 tax return Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). Where to file 2012 tax return However, if the individual is 65 or older or blind, the standard deduction may be higher. Where to file 2012 tax return If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. Where to file 2012 tax return Earned income defined. Where to file 2012 tax return   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. Where to file 2012 tax return    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. Where to file 2012 tax return See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. Where to file 2012 tax return Example 1. Where to file 2012 tax return Michael is single. Where to file 2012 tax return His parents can claim an exemption for him on their 2013 tax return. Where to file 2012 tax return He has interest income of $780 and wages of $150. Where to file 2012 tax return He has no itemized deductions. Where to file 2012 tax return Michael uses Table 20-3 to find his standard deduction. Where to file 2012 tax return He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. Where to file 2012 tax return His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). Where to file 2012 tax return Example 2. Where to file 2012 tax return Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. Where to file 2012 tax return Joe is married and files a separate return. Where to file 2012 tax return His wife does not itemize deductions on her separate return. Where to file 2012 tax return Joe has $1,500 in interest income and wages of $3,800. Where to file 2012 tax return He has no itemized deductions. Where to file 2012 tax return Joe finds his standard deduction by using Table 20-3. Where to file 2012 tax return He enters his earned income, $3,800 on line 1. Where to file 2012 tax return He adds lines 1 and 2 and enters $4,150 on line 3. Where to file 2012 tax return On line 5, he enters $4,150, the larger of lines 3 and 4. Where to file 2012 tax return Because Joe is married filing a separate return, he enters $6,100 on line 6. Where to file 2012 tax return On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. Where to file 2012 tax return Example 3. Where to file 2012 tax return Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. Where to file 2012 tax return She is 18 years old and blind. Where to file 2012 tax return She has interest income of $1,300 and wages of $2,900. Where to file 2012 tax return She has no itemized deductions. Where to file 2012 tax return Amy uses Table 20-3 to find her standard deduction. Where to file 2012 tax return She enters her wages of $2,900 on line 1. Where to file 2012 tax return She adds lines 1 and 2 and enters $3,250 on line 3. Where to file 2012 tax return On line 5, she enters $3,250, the larger of lines 3 and 4. Where to file 2012 tax return Because she is single, Amy enters $6,100 on line 6. Where to file 2012 tax return She enters $3,250 on line 7a. Where to file 2012 tax return This is the smaller of the amounts on lines 5 and 6. Where to file 2012 tax return Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. Where to file 2012 tax return She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. Where to file 2012 tax return Example 4. Where to file 2012 tax return Ed is single. Where to file 2012 tax return His parents can claim an exemption for him on their 2013 tax return. Where to file 2012 tax return He has wages of $7,000, interest income of $500, and a business loss of $3,000. Where to file 2012 tax return He has no itemized deductions. Where to file 2012 tax return Ed uses Table 20-3 to figure his standard deduction. Where to file 2012 tax return He enters $4,000 ($7,000 - $3,000) on line 1. Where to file 2012 tax return He adds lines 1 and 2 and enters $4,350 on line 3. Where to file 2012 tax return On line 5 he enters $4,350, the larger of lines 3 and 4. Where to file 2012 tax return Because he is single, Ed enters $6,100 on line 6. Where to file 2012 tax return On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. Where to file 2012 tax return Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. Where to file 2012 tax return Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . Where to file 2012 tax return You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. Where to file 2012 tax return You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). Where to file 2012 tax return See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. Where to file 2012 tax return When to itemize. Where to file 2012 tax return   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. Where to file 2012 tax return These deductions are explained in chapters 21–28. Where to file 2012 tax return    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. Where to file 2012 tax return Enter the amount from Schedule A, line 29, on Form 1040, line 40. Where to file 2012 tax return Electing to itemize for state tax or other purposes. Where to file 2012 tax return   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. Where to file 2012 tax return You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. Where to file 2012 tax return To make this election, you must check the box on line 30 of Schedule A. Where to file 2012 tax return Changing your mind. Where to file 2012 tax return   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. Where to file 2012 tax return S. Where to file 2012 tax return Individual Income Tax Return. Where to file 2012 tax return See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. Where to file 2012 tax return Married persons who filed separate returns. Where to file 2012 tax return   You can change methods of taking deductions only if you and your spouse both make the same changes. Where to file 2012 tax return Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. Where to file 2012 tax return    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. Where to file 2012 tax return You both must use the same method of claiming deductions. Where to file 2012 tax return If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. Where to file 2012 tax return See Persons not eligible for the standard deduction , earlier. Where to file 2012 tax return 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Where to file 2012 tax return Table 20-1. Where to file 2012 tax return Standard Deduction Chart for Most People* If your filing status is. Where to file 2012 tax return . Where to file 2012 tax return . Where to file 2012 tax return Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. Where to file 2012 tax return Use Table 20-2 or 20-3 instead. Where to file 2012 tax return Table 20-2. Where to file 2012 tax return Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. Where to file 2012 tax return Then go to the chart. Where to file 2012 tax return You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. Where to file 2012 tax return . Where to file 2012 tax return . Where to file 2012 tax return AND the number in the box above is. Where to file 2012 tax return . Where to file 2012 tax return . Where to file 2012 tax return THEN your standard deduction is. Where to file 2012 tax return . Where to file 2012 tax return . Where to file 2012 tax return Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. Where to file 2012 tax return Table 20-3. Where to file 2012 tax return Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. Where to file 2012 tax return Check the correct number of boxes below. Where to file 2012 tax return Then go to the worksheet. Where to file 2012 tax return You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. Where to file 2012 tax return Enter your earned income (defined below). Where to file 2012 tax return If none, enter -0-. Where to file 2012 tax return 1. Where to file 2012 tax return   2. Where to file 2012 tax return Additional amount. Where to file 2012 tax return 2. Where to file 2012 tax return $350 3. Where to file 2012 tax return Add lines 1 and 2. Where to file 2012 tax return 3. Where to file 2012 tax return   4. Where to file 2012 tax return Minimum standard deduction. Where to file 2012 tax return 4. Where to file 2012 tax return $1,000 5. Where to file 2012 tax return Enter the larger of line 3 or line 4. Where to file 2012 tax return 5. Where to file 2012 tax return   6. Where to file 2012 tax return Enter the amount shown below for your filing status. Where to file 2012 tax return Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. Where to file 2012 tax return   7. Where to file 2012 tax return Standard deduction. Where to file 2012 tax return         a. Where to file 2012 tax return Enter the smaller of line 5 or line 6. Where to file 2012 tax return If born after January 1, 1949, and not blind, stop here. Where to file 2012 tax return This is your standard deduction. Where to file 2012 tax return Otherwise, go on to line 7b. Where to file 2012 tax return 7a. Where to file 2012 tax return     b. Where to file 2012 tax return If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. Where to file 2012 tax return 7b. Where to file 2012 tax return     c. Where to file 2012 tax return Add lines 7a and 7b. Where to file 2012 tax return This is your standard deduction for 2013. Where to file 2012 tax return 7c. Where to file 2012 tax return   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Where to file 2012 tax return It also includes any amount received as a scholarship that you must include in your income. Where to file 2012 tax return Prev  Up  Next   Home   More Online Publications
Español

Medicare Payment Advisory Commission

The Medicare Payment Advisory Commission advises congress on a range of issues affecting medicare, including payemnts, services, access and regulations.

Contact the Agency or Department

Website: Medicare Payment Advisory Commission

Address: 425 Eye St NW
Suite 701

Washington, DC 20001

Phone Number: (202) 220-3700

The Where To File 2012 Tax Return

Where to file 2012 tax return Publication 559 - Main Content Table of Contents Personal RepresentativeDuties Fees Received by Personal Representatives Final Income Tax Return for Decedent—Form 1040Name, Address, and Signature When and Where To File Filing Requirements Income To Include Exemptions and Deductions Credits, Other Taxes, and Payments Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts Filing Reminders Other Tax InformationTax Benefits for Survivors Income in Respect of a Decedent Deductions in Respect of a Decedent Estate Tax Deduction Gifts, Insurance, and Inheritances Other Items of Income Income Tax Return of an Estate— Form 1041Filing Requirements Income To Include Exemption and Deductions Credits, Tax, and Payments Name, Address, and Signature When and Where To File Distributions to BeneficiariesIncome That Must Be Distributed Currently Other Amounts Distributed Discharge of a Legal Obligation Character of Distributions How and When To Report Bequest Termination of Estate Estate and Gift TaxesApplicable Credit Amount Gift Tax Estate Tax Generation-Skipping Transfer Tax Comprehensive ExampleFinal Return for Decedent—Form 1040 Income Tax Return of an Estate—Form 1041 How To Get Tax HelpLow Income Taxpayer Clinics Personal Representative A personal representative of an estate is an executor, administrator, or anyone who is in charge of the decedent's property. Where to file 2012 tax return Generally, an executor (or executrix) is named in a decedent's will to administer the estate and distribute properties as the decedent has directed. Where to file 2012 tax return An administrator (or administratrix) is usually appointed by the court if no will exists, if no executor was named in the will, or if the named executor cannot or will not serve. Where to file 2012 tax return In general, an executor and an administrator perform the same duties and have the same responsibilities. Where to file 2012 tax return For estate tax purposes, if there is no executor or administrator appointed, qualified, and acting within the United States, the term “executor” includes anyone in actual or constructive possession of any property of the decedent. Where to file 2012 tax return It includes, among others, the decedent's agents and representatives; safe-deposit companies, warehouse companies, and other custodians of property in this country; brokers holding securities of the decedent as collateral; and the debtors of the decedent who are in this country. Where to file 2012 tax return Duties The primary duties of a personal representative are to collect all the decedent's assets, pay his or her creditors, and distribute the remaining assets to the heirs or other beneficiaries. Where to file 2012 tax return The personal representative also must perform the following duties. Where to file 2012 tax return Apply for an employer identification number (EIN) for the estate. Where to file 2012 tax return File all tax returns, including income, estate and gift tax returns, when due. Where to file 2012 tax return Pay the tax determined up to the date of discharge from duties. Where to file 2012 tax return Other duties of the personal representative in federal tax matters are discussed in other sections of this publication. Where to file 2012 tax return If any beneficiary is a nonresident alien, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for information on the personal representative's duties as a withholding agent. Where to file 2012 tax return Penalty. Where to file 2012 tax return   There is a penalty for failure to file a tax return when due unless the failure is due to reasonable cause. Where to file 2012 tax return Reliance on an agent (attorney, accountant, etc. Where to file 2012 tax return ) is not reasonable cause for late filing. Where to file 2012 tax return It is the personal representative's duty to file the returns for the decedent and the estate when due. Where to file 2012 tax return Identification number. Where to file 2012 tax return   The first action you should take if you are the personal representative for the decedent is to apply for an EIN for the estate. Where to file 2012 tax return You should apply for this number as soon as possible because you need to enter it on returns, statements, and other documents you file concerning the estate. Where to file 2012 tax return You also must give the number to payers of interest and dividends and other payers who must file a return concerning the estate. Where to file 2012 tax return   You can get an EIN by applying online at www. Where to file 2012 tax return irs. Where to file 2012 tax return gov (click on "Apply for an EIN Online" under the Tools heading). Where to file 2012 tax return Generally, if you apply online, you will receive your EIN immediately upon completing the application. Where to file 2012 tax return You can also apply using Form SS-4, Application for Employer Identification Number. Where to file 2012 tax return Generally, if you apply by mail, it takes about 4 weeks to get your EIN. Where to file 2012 tax return See the form instructions for other ways to apply. Where to file 2012 tax return   Payers of interest and dividends report amounts on Forms 1099 using the identification number of the person to whom the account is payable. Where to file 2012 tax return After a decedent's death, Forms 1099 must reflect the identification number of the estate or beneficiary to whom the amounts are payable. Where to file 2012 tax return As the personal representative handling the estate, you must furnish this identification number to the payer. Where to file 2012 tax return For example, if interest is payable to the estate, the estate's EIN must be provided to the payer and used to report the interest on Form 1099-INT, Interest Income. Where to file 2012 tax return If the interest is payable to a surviving joint owner, the survivor's identification number, such as an SSN or ITIN, must be provided to the payer and used to report the interest. Where to file 2012 tax return   If the estate or a survivor may receive interest or dividends after you inform the payer of the decedent's death, the payer should give you (or the survivor) a Form W-9, Request for Taxpayer Identification Number and Certification (or a similar substitute form). Where to file 2012 tax return Complete this form to inform the payer of the estate's (or if completed by the survivor, the survivor's) identification number and return it to the payer. Where to file 2012 tax return    Do not use the deceased individual's identifying number to file an individual income tax return after the decedent's final tax return. Where to file 2012 tax return Also do not use it to make estimated tax payments for a tax year after the year of death. Where to file 2012 tax return Penalty. Where to file 2012 tax return   If you do not include the EIN or the taxpayer identification number of another person where it is required on a return, statement, or other document, you are liable for a penalty for each failure, unless you can show reasonable cause. Where to file 2012 tax return You also are liable for a penalty if you do not give the taxpayer identification number of another person when required on a return, statement, or other document. Where to file 2012 tax return Notice of fiduciary relationship. Where to file 2012 tax return   The term fiduciary means any person acting for another person. Where to file 2012 tax return It applies to persons who have positions of trust on behalf of others. Where to file 2012 tax return A personal representative for a decedent's estate is a fiduciary. Where to file 2012 tax return Form 56. Where to file 2012 tax return   If you are appointed to act in a fiduciary capacity for another, you must file a written notice with the IRS stating this. Where to file 2012 tax return Form 56, Notice Concerning Fiduciary Relationship, is used for this purpose. Where to file 2012 tax return See the Instructions for Form 56 for filing requirements and other information. Where to file 2012 tax return   File Form 56 as soon as all the necessary information (including the EIN) is available. Where to file 2012 tax return It notifies the IRS that you, as the fiduciary, are assuming the powers, rights, duties, and privileges of the decedent. Where to file 2012 tax return The notice remains in effect until you notify the IRS (by filing another Form 56) that your fiduciary relationship with the estate has terminated. Where to file 2012 tax return Termination of fiduciary relationship. Where to file 2012 tax return   Form 56 should also be filed to notify the IRS if your fiduciary relationship is terminated or when a successor fiduciary is appointed if the estate has not been terminated. Where to file 2012 tax return See Form 56 and its instructions for more information. Where to file 2012 tax return   At the time of termination of the fiduciary relationship, you may want to file Form 4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d), and Form 5495, Request for Discharge From Personal Liability Under Internal Revenue Code Section 2204 or 6905, to wind up your duties as fiduciary. Where to file 2012 tax return See below for a discussion of these forms. Where to file 2012 tax return Request for prompt assessment (charge) of tax. Where to file 2012 tax return   The IRS ordinarily has 3 years from the date an income tax return is filed, or its due date, whichever is later, to charge any additional tax due. Where to file 2012 tax return However, as a personal representative, you may request a prompt assessment of tax after the return has been filed. Where to file 2012 tax return This reduces the time for making the assessment to 18 months from the date the written request for prompt assessment was received. Where to file 2012 tax return This request can be made for any tax return (except the estate tax return) of the decedent or the decedent's estate. Where to file 2012 tax return This may permit a quicker settlement of the tax liability of the estate and an earlier final distribution of the assets to the beneficiaries. Where to file 2012 tax return Form 4810. Where to file 2012 tax return   Form 4810 can be used for making this request. Where to file 2012 tax return It must be filed separately from any other document. Where to file 2012 tax return   As the personal representative for the decedent's estate, you are responsible for any additional taxes that may be due. Where to file 2012 tax return You can request prompt assessment of any of the decedent's taxes (other than federal estate taxes) for any years for which the statutory period for assessment is open. Where to file 2012 tax return This applies even though the returns were filed before the decedent's death. Where to file 2012 tax return Failure to report income. Where to file 2012 tax return   If you or the decedent failed to report substantial amounts of gross income (more than 25% of the gross income reported on the return) or filed a false or fraudulent return, your request for prompt assessment will not shorten the period during which the IRS may assess the additional tax. Where to file 2012 tax return However, such a request may relieve you of personal liability for the tax if you did not have knowledge of the unpaid tax. Where to file 2012 tax return Request for discharge from personal liability for tax. Where to file 2012 tax return   An executor can make a request for discharge from personal liability for a decedent's income, gift, and estate taxes. Where to file 2012 tax return The request must be made after the returns for those taxes are filed. Where to file 2012 tax return To make the request, file Form 5495. Where to file 2012 tax return For this purpose, an executor is an executor or administrator that is appointed, qualified, and acting within the United States. Where to file 2012 tax return   Within 9 months after receipt of the request, the IRS will notify the executor of the amount of taxes due. Where to file 2012 tax return If this amount is paid, the executor will be discharged from personal liability for any future deficiencies. Where to file 2012 tax return If the IRS has not notified the executor, he or she will be discharged from personal liability at the end of the 9-month period. Where to file 2012 tax return    Even if the executor is discharged from personal liability, the IRS will still be able to assess tax deficiencies against the executor to the extent he or she still has any of the decedent's property. Where to file 2012 tax return Insolvent estate. Where to file 2012 tax return   Generally, if a decedent's estate is insufficient to pay all the decedent's debts, the debts due to the United States must be paid first. Where to file 2012 tax return Both the decedent's federal income tax liabilities at the time of death and the estate's income tax liability are debts due to the United States. Where to file 2012 tax return The personal representative of an insolvent estate is personally responsible for any tax liability of the decedent or of the estate if he or she had notice of such tax obligations or failed to exercise due care in determining if such obligations existed before distribution of the estate's assets and before being discharged from duties. Where to file 2012 tax return The extent of such personal responsibility is the amount of any other payments made before paying the debts due to the United States, except where such other debt paid has priority over the debts due to the United States. Where to file 2012 tax return Income tax liabilities need not be formally assessed for the personal representative to be liable if he or she was aware or should have been aware of their existence. Where to file 2012 tax return Fees Received by Personal Representatives All personal representatives must include fees paid to them from an estate in their gross income. Where to file 2012 tax return If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Form 1040, line 21. Where to file 2012 tax return If you are in the trade or business of being an executor, report fees received from the estate as self-employment income on Schedule C or Schedule C-EZ of your Form 1040. Where to file 2012 tax return If the estate operates a trade or business and you, as executor, actively participate in the trade or business while fulfilling your duties, any fees you receive related to the operation of the trade or business must be reported as self-employment income on Schedule C (or Schedule C-EZ) of your Form 1040. Where to file 2012 tax return Final Income Tax Return for Decedent—Form 1040 The personal representative (defined earlier) must file the final income tax return (Form 1040) of the decedent for the year of death and any returns not filed for preceding years. Where to file 2012 tax return A surviving spouse, under certain circumstances, may have to file the returns for the decedent. Where to file 2012 tax return See Joint Return, later. Where to file 2012 tax return Return for preceding year. Where to file 2012 tax return   If an individual died after the close of the tax year, but before the return for that year was filed, the return for the year just closed will not be the final return. Where to file 2012 tax return The return for that year will be a regular return and the personal representative must file it. Where to file 2012 tax return Example. Where to file 2012 tax return Samantha Smith died on March 21, 2013, before filing her 2012 tax return. Where to file 2012 tax return Her personal representative must file her 2012 return by April 15, 2013. Where to file 2012 tax return Her final tax return covering the period from January 1, 2013, to March 20, 2013, is due April 15, 2014. Where to file 2012 tax return Name, Address, and Signature Write the word “DECEASED,” the decedent's name, and the date of death across the top of the tax return. Where to file 2012 tax return If filing a joint return, write the name and address of the decedent and the surviving spouse in the name and address fields. Where to file 2012 tax return If a joint return is not being filed, write the decedent's name in the name field and the personal representative's name and address in the address field. Where to file 2012 tax return Third party designee. Where to file 2012 tax return   You can check the “Yes” box in the Third Party Designee area on page 2 of the return to authorize the IRS to discuss the return with a friend, family member, or any other person you choose. Where to file 2012 tax return This allows the IRS to call the person you identified as the designee to answer any questions that may arise during the processing of the return. Where to file 2012 tax return It also allows the designee to perform certain actions. Where to file 2012 tax return See the Instructions for Form 1040 for details. Where to file 2012 tax return Signature. Where to file 2012 tax return   If a personal representative has been appointed, that person must sign the return. Where to file 2012 tax return If it is a joint return, the surviving spouse must also sign it. Where to file 2012 tax return If no personal representative has been appointed, the surviving spouse (on a joint return) signs the return and writes in the signature area “Filing as surviving spouse. Where to file 2012 tax return ” If no personal representative has been appointed and if there is no surviving spouse, the person in charge of the decedent's property must file and sign the return as “personal representative. Where to file 2012 tax return ” Paid preparer. Where to file 2012 tax return   If you pay someone to prepare, assist in preparing, or review the tax return, that person must sign the return and fill in the other blanks in the Paid Preparer Use Only area of the return. Where to file 2012 tax return See the Form 1040 instructions for details. Where to file 2012 tax return When and Where To File The final income tax return is due at the same time the decedent's return would have been due had death not occurred. Where to file 2012 tax return A final return for a decedent who was a calendar year taxpayer is generally due on April 15 following the year of death, regardless of when during that year death occurred. Where to file 2012 tax return However, when the due date falls on a Saturday, Sunday, or legal holiday, the return is filed timely if filed by the next business day. Where to file 2012 tax return The tax return must be prepared for the year of death regardless of when during the year death occurred. Where to file 2012 tax return Generally, you must file the final income tax return of the decedent with the Internal Revenue Service Center for the place where you live. Where to file 2012 tax return A tax return for a decedent can be electronically filed. Where to file 2012 tax return A personal representative may also obtain an income tax filing extension on behalf of a decedent. Where to file 2012 tax return Filing Requirements The gross income, age, and filing status of a decedent generally determine whether a return must be filed. Where to file 2012 tax return Gross income is all income received by an individual from any source in the form of money, goods, property, and services that is not tax-exempt. Where to file 2012 tax return It includes gross receipts from self-employment, but if the business involves manufacturing, merchandising, or mining, subtract any cost of goods sold. Where to file 2012 tax return In general, filing status depends on whether the decedent was considered single or married at the time of death. Where to file 2012 tax return See the income tax return instructions or Publication 501, Exemptions, Standard Deduction, and Filing Information. Where to file 2012 tax return Refund A return must be filed to obtain a refund if tax was withheld from salaries, wages, pensions, or annuities, or if estimated tax was paid, even if a return is not otherwise required to be filed. Where to file 2012 tax return Also, the decedent may be entitled to other credits that result in a refund. Where to file 2012 tax return These advance payments of tax and credits are discussed later under Credits, Other Taxes, and Payments. Where to file 2012 tax return Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Where to file 2012 tax return   Form 1310 does not have to be filed if you are claiming a refund and you are: A surviving spouse filing an original or amended joint return with the decedent, or A court-appointed or certified personal representative filing the decedent’s original return and a copy of the court certificate showing your appointment is attached to the return. Where to file 2012 tax return   If the personal representative is filing a claim for refund on Form 1040X, Amended U. Where to file 2012 tax return S. Where to file 2012 tax return Individual Income Tax Return, or Form 843, Claim for Refund and Request for Abatement, and the court certificate has already been filed with the IRS, attach Form 1310 and write “Certificate Previously Filed” at the bottom of the form. Where to file 2012 tax return Example. Where to file 2012 tax return Edward Green died before filing his tax return. Where to file 2012 tax return You were appointed the personal representative for Edward's estate, and you file his Form 1040 showing a refund due. Where to file 2012 tax return You do not need Form 1310 to claim the refund if you attach a copy of the court certificate showing you were appointed the personal representative. Where to file 2012 tax return    If you are a surviving spouse and you receive a tax refund check in both your name and your deceased spouse's name, you can have the check reissued in your name alone. Where to file 2012 tax return Return the joint-name check marked “VOID” to your local IRS office or the service center where you mailed your return, along with a written request for reissuance of the refund check. Where to file 2012 tax return A new check will be issued in your name and mailed to you. Where to file 2012 tax return Death certificate. Where to file 2012 tax return   When filing the decedent's final income tax return, do not attach the death certificate or other proof of death to the final return. Where to file 2012 tax return Instead, keep it for your records and provide it if requested. Where to file 2012 tax return Nonresident Alien If the decedent was a nonresident alien who would have had to file Form 1040NR, U. Where to file 2012 tax return S. Where to file 2012 tax return Nonresident Alien Income Tax Return, you must file that form for the decedent's final tax year. Where to file 2012 tax return See the Instructions for Form 1040NR for the filing requirements, due date, and where to file. Where to file 2012 tax return Joint Return Generally, the personal representative and the surviving spouse can file a joint return for the decedent and the surviving spouse. Where to file 2012 tax return However, the surviving spouse alone can file the joint return if no personal representative has been appointed before the due date for filing the final joint return for the year of death. Where to file 2012 tax return This also applies to the return for the preceding year if the decedent died after the close of the preceding tax year and before filing the return for that year. Where to file 2012 tax return The income of the decedent that was includible on his or her return for the year up to the date of death (see Income To Include, later) and the income of the surviving spouse for the entire year must be included in the final joint return. Where to file 2012 tax return A final joint return with the decedent cannot be filed if the surviving spouse remarried before the end of the year of the decedent's death. Where to file 2012 tax return The filing status of the decedent in this instance is married filing a separate return. Where to file 2012 tax return For information about tax benefits to which a surviving spouse may be entitled, see Tax Benefits for Survivors, later, under Other Tax Information. Where to file 2012 tax return Personal representative may revoke joint return election. Where to file 2012 tax return   A court-appointed personal representative may revoke an election to file a joint return previously made by the surviving spouse alone. Where to file 2012 tax return This is done by filing a separate return for the decedent within one year from the due date of the return (including any extensions). Where to file 2012 tax return The joint return made by the surviving spouse will then be regarded as the separate return of that spouse by excluding the decedent's items and refiguring the tax liability. Where to file 2012 tax return Relief from joint liability. Where to file 2012 tax return   In some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Where to file 2012 tax return If the decedent qualified for this relief while alive, the personal representative can pursue an existing request, or file a request, for relief from joint liability. Where to file 2012 tax return For information on requesting this relief, see Publication 971, Innocent Spouse Relief. Where to file 2012 tax return Income To Include The decedent's income includible on the final return is generally determined as if the person were still alive except that the taxable period is usually shorter because it ends on the date of death. Where to file 2012 tax return The method of accounting regularly used by the decedent before death also determines the income includible on the final return. Where to file 2012 tax return This section explains how some types of income are reported on the final return. Where to file 2012 tax return For more information about accounting methods, see Publication 538, Accounting Periods and Methods. Where to file 2012 tax return Cash Method If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return. Where to file 2012 tax return Constructive receipt of income. Where to file 2012 tax return   Interest from coupons on the decedent's bonds is constructively received by the decedent if the coupons matured in the decedent's final tax year, but had not been cashed. Where to file 2012 tax return Include the interest income on the final return. Where to file 2012 tax return   Generally, a dividend is considered constructively received if it was available for use by the decedent without restriction. Where to file 2012 tax return If the corporation customarily mailed its dividend checks, the dividend was includible when received. Where to file 2012 tax return If the individual died between the time the dividend was declared and the time it was received in the mail, the decedent did not constructively receive it before death. Where to file 2012 tax return Do not include the dividend in the final return. Where to file 2012 tax return Accrual Method Generally, under an accrual method of accounting, income is reported when earned. Where to file 2012 tax return If the decedent used an accrual method, only the income items normally accrued before death are included on the final return. Where to file 2012 tax return Interest and Dividend Income (Forms 1099) Form(s) 1099 reporting interest and dividends earned by the decedent before death should be received and the amounts included on the decedent's final return. Where to file 2012 tax return A separate Form 1099 should show the interest and dividends earned after the date of the decedent's death and paid to the estate or other recipient that must include those amounts on its return. Where to file 2012 tax return You can request corrected Forms 1099 if these forms do not properly reflect the right recipient or amounts. Where to file 2012 tax return For example, a Form 1099-INT, reporting interest payable to the decedent, may include income that should be reported on the final income tax return of the decedent, as well as income that the estate or other recipient should report, either as income earned after death or as income in respect of the decedent (discussed later). Where to file 2012 tax return For income earned after death, you should ask the payer for a Form 1099 that properly identifies the recipient (by name and identification number) and the proper amount. Where to file 2012 tax return If that is not possible, or if the form includes an amount that represents income in respect of the decedent, report the interest as shown next under How to report. Where to file 2012 tax return See U. Where to file 2012 tax return S. Where to file 2012 tax return savings bonds acquired from decedent under Income in Respect of a Decedent, later, for information on savings bond interest that may have to be reported on the final return. Where to file 2012 tax return How to report. Where to file 2012 tax return   If you are preparing the decedent's final return and you have received a Form 1099-INT for the decedent that includes amounts belonging to the decedent and to another recipient (the decedent's estate or another beneficiary), report the total interest shown on Form 1099-INT on Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Where to file 2012 tax return Next, enter a subtotal of the interest shown on Forms 1099, and the interest reportable from other sources for which you did not receive Forms 1099. Where to file 2012 tax return Then, show any interest (including any interest you receive as a nominee) belonging to another recipient separately and subtract it from the subtotal. Where to file 2012 tax return Identify the amount of this adjustment as “Nominee Distribution” or other appropriate designation. Where to file 2012 tax return   Report dividend income for which you received a Form 1099-DIV, Dividends and Distributions, on the appropriate schedule using the same procedure. Where to file 2012 tax return    Note. Where to file 2012 tax return If the decedent received amounts as a nominee, you must give the actual owner a Form 1099, unless the owner is the decedent's spouse. Where to file 2012 tax return See General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) for more information on filing Forms 1099. Where to file 2012 tax return Partnership Income The death of a partner closes the partnership's tax year for that partner. Where to file 2012 tax return Generally, it does not close the partnership's tax year for the remaining partners. Where to file 2012 tax return The decedent's distributive share of partnership items must be figured as if the partnership's tax year ended on the date the partner died. Where to file 2012 tax return To avoid an interim closing of the partnership books, the partners can agree to estimate the decedent's distributive share by prorating the amounts the partner would have included for the entire partnership tax year. Where to file 2012 tax return On the decedent's final return, include the decedent's distributive share of partnership items for the following periods. Where to file 2012 tax return The partnership's tax year that ended within or with the decedent's final tax year (the year ending on the date of death). Where to file 2012 tax return The period, if any, from the end of the partnership's tax year in (1) to the decedent's date of death. Where to file 2012 tax return Example. Where to file 2012 tax return Mary Smith was a partner in XYZ partnership and reported her income on a tax year ending December 31. Where to file 2012 tax return The partnership uses a tax year ending June 30. Where to file 2012 tax return Mary died August 31, 2013, and her estate established its tax year through August 31. Where to file 2012 tax return The distributive share of partnership items based on the decedent's partnership interest is reported as follows. Where to file 2012 tax return Final Return for the Decedent—January 1 through August 31, 2013, includes XYZ partnership items from (a) the partnership tax year ending June 30, 2013, and (b) the partnership tax year beginning July 1, 2013, and ending August 31, 2013 (the date of death). Where to file 2012 tax return Income Tax Return of the Estate—September 1, 2013, through August 31, 2014, includes XYZ partnership items for the period September 1, 2013, through June 30, 2014. Where to file 2012 tax return S Corporation Income If the decedent was a shareholder in an S corporation, include on the final return the decedent's share of the S corporation's items of income, loss, deduction, and credit for the following periods. Where to file 2012 tax return The corporation's tax year that ended within or with the decedent's final tax year (the year ending on the date of death). Where to file 2012 tax return The period, if any, from the end of the corporation's tax year in (1) to the decedent's date of death. Where to file 2012 tax return Self-Employment Income Include self-employment income actually or constructively received or accrued, depending on the decedent's accounting method. Where to file 2012 tax return For self-employment tax purposes only, the decedent's self-employment income will include the decedent's distributive share of a partnership's income or loss through the end of the month in which death occurred. Where to file 2012 tax return For this purpose, the partnership's income or loss is considered to be earned ratably over the partnership's tax year. Where to file 2012 tax return Community Income If the decedent was married and domiciled in a community property state, half of the income received and half of the expenses paid during the decedent's tax year by either the decedent or spouse may be considered to be the income and expenses of the other. Where to file 2012 tax return For more information, see Publication 555, Community Property. Where to file 2012 tax return HSA, Archer MSA, or Medicare Advantage MSA The treatment of an HSA (health savings account), an Archer MSA (medical savings account), or a Medicare Advantage MSA at the death of the account holder, depends on who acquires the interest in the account. Where to file 2012 tax return If the decedent's estate acquires the interest, the fair market value (FMV) of the assets in the account on the date of death is included in income on the decedent's final return. Where to file 2012 tax return The estate tax deduction, discussed later, does not apply to this amount. Where to file 2012 tax return If a beneficiary acquires the interest, see the discussion under Income in Respect of a Decedent, later. Where to file 2012 tax return For other information on HSAs, Archer MSAs, or Medicare Advantage MSAs, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Where to file 2012 tax return Coverdell Education Savings Account (ESA) Generally, the balance in a Coverdell ESA must be distributed within 30 days after the individual for whom the account was established reaches age 30, or dies, whichever is earlier. Where to file 2012 tax return The treatment of the Coverdell ESA at the death of an individual under age 30 depends on who acquires the interest in the account. Where to file 2012 tax return If the decedent's estate acquires the interest, the earnings on the account must be included on the final income tax return of the decedent. Where to file 2012 tax return The estate tax deduction, discussed later, does not apply to this amount. Where to file 2012 tax return If a beneficiary acquires the interest, see the discussion under Income in Respect of a Decedent, later. Where to file 2012 tax return The age 30 limitation does not apply if the individual for whom the account was established or the beneficiary that acquires the account is an individual with special needs. Where to file 2012 tax return This includes an individual who, because of a physical, mental, or emotional condition (including a learning disability), requires additional time to complete his or her education. Where to file 2012 tax return For more information on Coverdell ESAs, see Publication 970, Tax Benefits for Education. Where to file 2012 tax return Accelerated Death Benefits Accelerated death benefits are amounts received under a life insurance contract before the death of the insured individual. Where to file 2012 tax return These benefits also include amounts received on the sale or assignment of the contract to a viatical settlement provider. Where to file 2012 tax return Generally, if the decedent received accelerated death benefits on the life of a terminally or chronically ill individual, whether on his or her own life or on the life of another person, those benefits are not included in the decedent's income. Where to file 2012 tax return For more information, see the discussion under Gifts, Insurance, and Inheritances under Other Tax Information, later. Where to file 2012 tax return Exemptions and Deductions Generally, the rules for exemptions and deductions allowed to an individual also apply to the decedent's final income tax return. Where to file 2012 tax return Show on the final return deductible items the decedent paid (or accrued, if the decedent reported deductions on an accrual method) before death. Where to file 2012 tax return This section contains a detailed discussion of medical expenses because the tax treatment of the decedent's medical expenses can be different. Where to file 2012 tax return See Medical Expenses, later. Where to file 2012 tax return Exemptions You can claim the decedent's personal exemption on the final income tax return. Where to file 2012 tax return If the decedent was another person's dependent (for example, a parent's), you cannot claim the personal exemption on the decedent's final return. Where to file 2012 tax return Standard Deduction If you do not itemize deductions on the final return, the full amount of the appropriate standard deduction is allowed regardless of the date of death. Where to file 2012 tax return For information on the appropriate standard deduction, see the Form 1040 income tax return instructions or Publication 501. Where to file 2012 tax return Medical Expenses Medical expenses paid before death by the decedent are deductible, subject to limits, on the final income tax return if deductions are itemized. Where to file 2012 tax return This includes expenses for the decedent, as well as for the decedent's spouse and dependents. Where to file 2012 tax return Beginning in 2013, medical expenses exceeding 10% of adjusted gross income (AGI) may be deducted, unless the decedent or their spouse is age 65 or older. Where to file 2012 tax return In that case medical expenses exceeding 7. Where to file 2012 tax return 5% of AGI may be deducted. Where to file 2012 tax return Qualified medical expenses are not deductible if paid with a tax-free distribution from an HSA or an Archer MSA. Where to file 2012 tax return Election for decedent's expenses. Where to file 2012 tax return   Medical expenses not paid before death are liabilities of the estate and are shown on the federal estate tax return (Form 706). Where to file 2012 tax return However, if medical expenses for the decedent are paid out of the estate during the 1-year period beginning with the day after death, you can elect to treat all or part of the expenses as paid by the decedent at the time they were incurred. Where to file 2012 tax return   If you make the election, you can claim all or part of the expenses on the decedent's income tax return (if deductions are itemized) rather than on the federal estate tax return (Form 706). Where to file 2012 tax return You can deduct expenses incurred in the year of death on the final income tax return. Where to file 2012 tax return You should file an amended return (Form 1040X) for medical expenses incurred in an earlier year, unless the statutory period for filing a claim for that year has expired. Where to file 2012 tax return   The amount you can deduct on the income tax return is the amount above 10% of adjusted gross income (or 7. Where to file 2012 tax return 5% of adjusted gross income if the decedent or the decedent's spouse was born before January 2, 1949). Where to file 2012 tax return Amounts not deductible because of this percentage cannot be claimed on the federal estate tax return. Where to file 2012 tax return Making the election. Where to file 2012 tax return   You make the election by attaching a statement, in duplicate, to the decedent's income tax return or amended return. Where to file 2012 tax return The statement must state that you have not claimed the amount as an estate tax deduction, and that the estate waives the right to claim the amount as a deduction. Where to file 2012 tax return This election applies only to expenses incurred for the decedent, not to expenses incurred to provide medical care for dependents. Where to file 2012 tax return Example. Where to file 2012 tax return Richard Brown used the cash method of accounting and filed his income tax return on a calendar year basis. Where to file 2012 tax return Richard died on June 1, 2013, at the age of 78, after incurring $800 in medical expenses. Where to file 2012 tax return Of that amount, $500 was incurred in 2012 and $300 was incurred in 2013. Where to file 2012 tax return Richard itemized his deductions when he filed his 2012 income tax return. Where to file 2012 tax return The personal representative of the estate paid the entire $800 liability in August 2013. Where to file 2012 tax return The personal representative may file an amended return (Form 1040X) for 2012 claiming the $500 medical expense as a deduction, subject to the 7. Where to file 2012 tax return 5% limit. Where to file 2012 tax return The $300 of expenses incurred in 2013 can be deducted on the final income tax return if deductions are itemized, subject to the 7. Where to file 2012 tax return 5% limit. Where to file 2012 tax return The personal representative must file a statement in duplicate with each return stating that these amounts have not been claimed on the federal estate tax return (Form 706), and waiving the right to claim such a deduction on Form 706 in the future. Where to file 2012 tax return Medical expenses not paid by estate. Where to file 2012 tax return   If you paid medical expenses for your deceased spouse or dependent, claim the expenses on your tax return for the year in which you paid them, whether they are paid before or after the decedent's death. Where to file 2012 tax return If the decedent was a child of divorced or separated parents, the medical expenses can usually be claimed by both the custodial and noncustodial parent to the extent paid by that parent during the year. Where to file 2012 tax return Insurance reimbursements. Where to file 2012 tax return   Insurance reimbursements of previously deducted medical expenses due a decedent at the time of death and later received by the decedent's estate are includible in the income tax return of the estate (Form 1041) for the year the reimbursements are received. Where to file 2012 tax return The reimbursements are also includible in the decedent's gross estate. Where to file 2012 tax return No deduction for funeral expenses can be taken on the final Form 1040 of a decedent. Where to file 2012 tax return These expenses may be deductible for estate tax purposes on Form 706. Where to file 2012 tax return Deduction for Losses A decedent's net operating loss deduction from a prior year and any capital losses (including capital loss carryovers) can be deducted only on the decedent's final income tax return. Where to file 2012 tax return A net operating loss on the decedent's final income tax return can be carried back to prior years. Where to file 2012 tax return (See Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Where to file 2012 tax return ) You cannot deduct any unused net operating loss or capital loss on the estate's income tax return. Where to file 2012 tax return At-risk loss limits. Where to file 2012 tax return   Special at-risk rules apply to most activities that are engaged in as a trade or business or for the production of income. Where to file 2012 tax return   These rules limit the deductible loss to the amount which the individual was considered at-risk in the activity. Where to file 2012 tax return An individual generally will be considered at-risk to the extent of the money and the adjusted basis of property that he or she contributed to the activity and certain amounts the individual borrowed for use in the activity. Where to file 2012 tax return An individual will be considered at-risk for amounts borrowed only if he or she was personally liable for the repayment or if the amounts borrowed were secured by property other than that used in the activity. Where to file 2012 tax return The individual is not considered at-risk for borrowed amounts if the lender has an interest in the activity or if the lender is related to a person who has an interest in the activity. Where to file 2012 tax return For more information, see Publication 925, Passive Activity and At-Risk Rules. Where to file 2012 tax return Passive activity rules. Where to file 2012 tax return   A passive activity is any trade or business activity in which the taxpayer does not materially participate. Where to file 2012 tax return To determine material participation, see Publication 925. Where to file 2012 tax return Rental activities are passive activities regardless of the taxpayer's participation, unless the taxpayer meets certain eligibility requirements. Where to file 2012 tax return   Individuals, estates, and trusts can offset passive activity losses only against passive activity income. Where to file 2012 tax return Passive activity losses or credits not allowed in one tax year can be carried forward to the next year. Where to file 2012 tax return   If a passive activity interest is transferred because a taxpayer dies, the accumulated unused passive activity losses are allowed as a deduction against the decedent's income in the year of death. Where to file 2012 tax return Losses are allowed only to the extent they are greater than the excess of the transferee's (recipient of the interest transferred) basis in the property over the decedent's adjusted basis in the property immediately before death. Where to file 2012 tax return The part of the accumulated losses equal to the excess is not allowed as a deduction for any tax year. Where to file 2012 tax return   Use Form 8582, Passive Activity Loss Limitations, to summarize losses and income from passive activities and to figure the amounts allowed. Where to file 2012 tax return For more information, see Publication 925. Where to file 2012 tax return Credits, Other Taxes, and Payments Discussed below are some of the tax credits, types of taxes that may be owed, income tax withheld, and estimated tax payments reported on the final return of a decedent. Where to file 2012 tax return Credits On the final income tax return, you can claim any tax credits that applied to the decedent before death. Where to file 2012 tax return Some of these credits are discussed next. Where to file 2012 tax return Earned income credit. Where to file 2012 tax return   If the decedent was an eligible individual, you can claim the earned income credit on the decedent's final return even though the return covers less than 12 months. Where to file 2012 tax return If the allowable credit is more than the tax liability for the year, the excess is refunded. Where to file 2012 tax return   For more information, see Publication 596, Earned Income Credit (EIC). Where to file 2012 tax return Credit for the elderly or the disabled. Where to file 2012 tax return   This credit is allowable on a decedent's final income tax return if the decedent met both of the following requirements in the year of death. Where to file 2012 tax return The decedent: Was a “qualified individual,” and Had income (adjusted gross income (AGI) and nontaxable social security and pensions) less than certain limits. Where to file 2012 tax return   For details on qualifying for or figuring the credit, see Publication 524, Credit for the Elderly or the Disabled. Where to file 2012 tax return Child tax credit. Where to file 2012 tax return   If the decedent had a qualifying child, you may be able to claim the child tax credit on the decedent's final return even though the return covers less than 12 months. Where to file 2012 tax return You may be able to claim the additional child tax credit and get a refund if the credit is more than the decedent's liability. Where to file 2012 tax return For more information, see the Instructions for Form 1040. Where to file 2012 tax return Adoption credit. Where to file 2012 tax return   Depending upon when the adoption was finalized, this credit may be taken on a decedent's final income tax return if the decedent: Adopted an eligible child and paid qualified adoption expenses, or Has a carryforward of an adoption credit from a prior year. Where to file 2012 tax return   Also, if the decedent is survived by a spouse who meets the filing status of qualifying widow(er), unused adoption credit may be carried forward and used following the death of the decedent. Where to file 2012 tax return See Form 8839, Qualified Adoption Expenses, and its instructions for more details. Where to file 2012 tax return General business tax credit. Where to file 2012 tax return   The general business credit available to a taxpayer is limited. Where to file 2012 tax return Any credit arising in a tax year beginning before 1998 that has not been used up can be carried forward for up to 15 years. Where to file 2012 tax return Any unused credit arising in a tax year beginning after 1997 has a 1-year carryback and a 20-year carryforward period. Where to file 2012 tax return   After the carryforward period, a deduction may be allowed for any unused business credit. Where to file 2012 tax return If the taxpayer dies before the end of the carryforward period, the deduction generally is allowed in the year of death. Where to file 2012 tax return   For more information on the general business credit, see Publication 334, Tax Guide for Small Business. Where to file 2012 tax return Other Taxes Taxes other than income tax that may be owed on the final return of a decedent include self-employment tax and alternative minimum tax, which are reported on Form 1040. Where to file 2012 tax return Self-employment tax. Where to file 2012 tax return   Self-employment tax may be owed on the final return if either of the following applied to the decedent in the year of death: Net earnings from self-employment (excluding income described in (2)) were $400 or more; or Wages from services performed as a church employee were $108. Where to file 2012 tax return 28 or more. Where to file 2012 tax return Alternative minimum tax (AMT). Where to file 2012 tax return   The tax laws give special treatment to certain types of income and allow special deductions and credits for certain types of expenses. Where to file 2012 tax return The alternative minimum tax (AMT) was enacted so taxpayers who benefit from these laws still pay at least a minimum amount of tax. Where to file 2012 tax return In general, the AMT is the excess of the tentative minimum tax over the regular tax shown on the return. Where to file 2012 tax return Form 6251. Where to file 2012 tax return    Use Form 6251, Alternative Minimum Tax—Individuals, to determine if this tax applies to the decedent. Where to file 2012 tax return See the form instructions for information on when you must attach Form 6251 to Form 1040. Where to file 2012 tax return Form 8801. Where to file 2012 tax return   If the decedent paid AMT in a previous year or had a credit carryforward, the decedent may be eligible for a minimum tax credit. Where to file 2012 tax return See Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts. Where to file 2012 tax return Payments of Tax The income tax withheld from the decedent's salary, wages, pensions, or annuities, and the amount paid as estimated tax are credits (advance payments of tax) that must be claimed on the final return. Where to file 2012 tax return Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts Income tax liability may be forgiven for a decedent who dies due to service in a combat zone, due to military or terrorist actions, as a result of a terrorist attack, or while serving in the line of duty as an astronaut. Where to file 2012 tax return Combat Zone If a member of the Armed Forces of the United States dies while in active service in a combat zone or from wounds, disease, or injury incurred in a combat zone, the decedent's income tax liability is abated (forgiven) for the entire year in which death occurred and for any prior tax year ending on or after the first day the person served in a combat zone in active service. Where to file 2012 tax return For this purpose, a qualified hazardous duty area is treated as a combat zone. Where to file 2012 tax return If the tax (including interest, additions to the tax, and additional amounts) for these years has been assessed, the assessment will be forgiven. Where to file 2012 tax return If the tax has been collected (regardless of the date of collection), that tax will be credited or refunded. Where to file 2012 tax return Any of the decedent's income tax for tax years before those mentioned above that remains unpaid as of the actual (or presumptive) date of death will not be assessed. Where to file 2012 tax return If any unpaid tax (including interest, additions to the tax, and additional amounts) has been assessed, this assessment will be forgiven. Where to file 2012 tax return Also, if any tax was collected after the date of death, that amount will be credited or refunded. Where to file 2012 tax return The date of death of a member of the Armed Forces reported as missing in action or as a prisoner of war is the date his or her name is removed from missing status for military pay purposes. Where to file 2012 tax return This is true even if death actually occurred earlier. Where to file 2012 tax return For other tax information for members of the Armed Forces, see Publication 3, Armed Forces' Tax Guide. Where to file 2012 tax return Military or Terrorist Actions The decedent's income tax liability is forgiven if, at death, he or she was a military or civilian employee of the United States who died because of wounds or injury incurred: While a U. Where to file 2012 tax return S. Where to file 2012 tax return employee, and In a military or terrorist action. Where to file 2012 tax return The forgiveness applies to the tax year in which death occurred and for any earlier tax year, beginning with the year before the year in which the wounds or injury occurred. Where to file 2012 tax return Example. Where to file 2012 tax return The income tax liability of a civilian employee of the United States who died in 2013 because of wounds incurred while a U. Where to file 2012 tax return S. Where to file 2012 tax return employee in a terrorist attack that occurred in 2008 will be forgiven for 2013 and for all prior tax years in the period 2007 through 2012. Where to file 2012 tax return Refunds are allowed for the tax years for which the period for filing a claim for refund has not ended, as discussed later. Where to file 2012 tax return Military or terrorist action defined. Where to file 2012 tax return   A military or terrorist action means the following. Where to file 2012 tax return Any terrorist activity that most of the evidence indicates was directed against the United States or any of its allies. Where to file 2012 tax return Any military action involving the U. Where to file 2012 tax return S. Where to file 2012 tax return Armed Forces and resulting from violence or aggression against the United States or any of its allies, or the threat of such violence or aggression. Where to file 2012 tax return   Terrorist activity includes criminal offenses intended to coerce, intimidate, or retaliate against the government or civilian population. Where to file 2012 tax return Military action does not include training exercises. Where to file 2012 tax return Any multinational force in which the United States is participating is treated as an ally of the United States. Where to file 2012 tax return Determining if a terrorist activity or military action has occurred. Where to file 2012 tax return   You may rely on published guidance from the IRS to determine if a particular event is considered a terrorist activity or military action. Where to file 2012 tax return Specified Terrorist Victim The Victims of Terrorism Tax Relief Act of 2001 (the Act) provides tax relief for those injured or killed as a result of terrorist attacks, certain survivors of those killed as a result of terrorist attacks, and others who were affected by terrorist attacks. Where to file 2012 tax return Under the Act, the federal income tax liability of those killed in the following attacks (specified terrorist victim) is forgiven for certain tax years. Where to file 2012 tax return The April 19, 1995, terrorist attack on the Alfred P. Where to file 2012 tax return Murrah Federal Building (Oklahoma City). Where to file 2012 tax return The September 11, 2001, terrorist attacks. Where to file 2012 tax return The terrorist attacks involving anthrax occurring after September 10, 2001, and before January 1, 2002. Where to file 2012 tax return The Act also exempts from federal income tax the following types of income. Where to file 2012 tax return Qualified disaster relief payments made after September 10, 2001, to cover personal, family, living, or funeral expenses incurred because of a terrorist attack. Where to file 2012 tax return Certain disability payments received in tax years ending after September 10, 2001, for injuries sustained in a terrorist attack. Where to file 2012 tax return Certain death benefits paid by an employer to the survivor of an employee because the employee died as a result of a terrorist attack. Where to file 2012 tax return Payments from the September 11th Victim Compensation Fund 2001. Where to file 2012 tax return The Act also reduces the estate tax of individuals who die as a result of a terrorist attack. Where to file 2012 tax return See Publication 3920, Tax Relief for Victims of Terrorist Attacks, for more information. Where to file 2012 tax return Astronauts Legislation extended the tax relief available under the Victims of Terrorism Tax Relief Act of 2001 (the Act) to astronauts who died in the line of duty after December 31, 2002. Where to file 2012 tax return The decedent's income tax liability is forgiven for the tax year in which death occurs, and for the tax year prior to death. Where to file 2012 tax return For information on death benefit payments and the reduction of federal estate taxes, see Publication 3920. Where to file 2012 tax return However, the discussions in that publication under Death Benefits and Estate Tax Reduction should be modified for astronauts (for example, by using the date of death of the astronaut instead of September 11, 2001). Where to file 2012 tax return For more information on the Act, see Publication 3920. Where to file 2012 tax return Claim for Credit or Refund If any of these tax-forgiveness situations applies to a prior year tax, any tax paid for which the period for filing a claim has not ended will be credited or refunded. Where to file 2012 tax return If any tax is still due, it will be canceled. Where to file 2012 tax return The normal period for filing a claim for credit or refund is 3 years after the return was filed or 2 years after the tax was paid, whichever is later. Where to file 2012 tax return If death occurred in a combat zone or from wounds, disease, or injury incurred in a combat zone, the period for filing the claim is extended by: The amount of time served in the combat zone (including any period in which the individual was in missing status), plus The period of continuous qualified hospitalization for injury from service in the combat zone, if any, plus The next 180 days. Where to file 2012 tax return Qualified hospitalization means any hospitalization outside the United States and any hospitalization in the United States of not more than 5 years. Where to file 2012 tax return This extended period for filing the claim also applies to a member of the Armed Forces who was deployed outside the United States in a designated contingency operation. Where to file 2012 tax return Filing a claim. Where to file 2012 tax return   Use the following procedures to file a claim. Where to file 2012 tax return If a U. Where to file 2012 tax return S. Where to file 2012 tax return individual income tax return (Form 1040, 1040A, or 1040EZ) has not been filed, you should make a claim for refund of any withheld income tax or estimated tax payments by filing Form 1040. Where to file 2012 tax return Form W-2, Wage and Tax Statement, must accompany all returns. Where to file 2012 tax return If a U. Where to file 2012 tax return S. Where to file 2012 tax return individual income tax return has been filed, you should make a claim for refund by filing Form 1040X. Where to file 2012 tax return You must file a separate Form 1040X for each year in question. Where to file 2012 tax return   You must file these returns and claims at the following address for regular mail (U. Where to file 2012 tax return S. Where to file 2012 tax return Postal Service). Where to file 2012 tax return    Internal Revenue Service 333 W. Where to file 2012 tax return Pershing, P5–6503 Kansas City, MO 64108   Identify all returns and claims for refund by writing “Iraq—KIA,” “Enduring Freedom—KIA,” “Kosovo Operation—KIA,” “Desert Storm—KIA,” or “Former Yugoslavia—KIA” in bold letters on the top of page 1 of the return or claim. Where to file 2012 tax return On the applicable return, write the same phrase on the line for total tax. Where to file 2012 tax return If the individual was killed in a terrorist or military action, put “KITA” on the front of the return and on the line for total tax. Where to file 2012 tax return   Include an attachment showing the computation of the decedent's tax liability and a computation of the amount to be forgiven. Where to file 2012 tax return On joint returns, make an allocation of the tax as described below under Joint returns. Where to file 2012 tax return If you cannot make a proper allocation, attach a statement of all income and deductions allocable to each spouse and the IRS will make the proper allocation. Where to file 2012 tax return   You must attach Form 1310 to all returns and claims for refund. Where to file 2012 tax return However, for exceptions to filing Form 1310, see Form 1310. Where to file 2012 tax return Statement of Person Claiming Refund Due a Deceased Taxpayer, under Refund, earlier. Where to file 2012 tax return   You must also attach proof of death that includes a statement that the individual was a U. Where to file 2012 tax return S. Where to file 2012 tax return employee on the date of injury and on the date of death and died as the result of a military or terrorist action. Where to file 2012 tax return For military and civilian employees of the Department of Defense, attach DD Form 1300, Report of Casualty. Where to file 2012 tax return For other U. Where to file 2012 tax return S. Where to file 2012 tax return civilian employees killed in the United States, attach a death certificate and a certification (letter) from the federal employer. Where to file 2012 tax return For other U. Where to file 2012 tax return S. Where to file 2012 tax return civilian employees killed overseas, attach a certification from the Department of State. Where to file 2012 tax return   If you do not have enough tax information to file a timely claim for refund, you can suspend the period for filing a claim by filing Form 1040X. Where to file 2012 tax return Attach Form 1310, any required documentation currently available, and a statement that you will file an amended claim as soon as you have the required tax information. Where to file 2012 tax return Joint returns. Where to file 2012 tax return   If a joint return was filed, only the decedent's part of the income tax liability is eligible for forgiveness. Where to file 2012 tax return Determine the decedent's tax liability as follows. Where to file 2012 tax return Figure the income tax for which the decedent would have been liable if a separate return had been filed. Where to file 2012 tax return Figure the income tax for which the spouse would have been liable if a separate return had been filed. Where to file 2012 tax return Multiply the joint tax liability by a fraction. Where to file 2012 tax return The numerator of the fraction is the amount in (1), above. Where to file 2012 tax return The denominator of the fraction is the total of (1) and (2). Where to file 2012 tax return   The resulting amount from (3) above is the decedent's tax liability eligible for forgiveness. Where to file 2012 tax return Filing Reminders To minimize the time needed to process the decedent's final return and issue any refund, be sure to follow these procedures. Where to file 2012 tax return Write “DECEASED,” the decedent's name, and the date of death across the top of the tax return. Where to file 2012 tax return If a personal representative has been appointed, the personal representative must sign the return. Where to file 2012 tax return If it is a joint return, the surviving spouse must also sign it. Where to file 2012 tax return If you are the decedent's spouse filing a joint return with the decedent and no personal representative has been appointed, write “Filing as surviving spouse” in the area where you sign the return. Where to file 2012 tax return If no personal representative has been appointed and if there is no surviving spouse, the person in charge of the decedent's property must file and sign the return as “personal representative. Where to file 2012 tax return ” To claim a refund for the decedent, do the following. Where to file 2012 tax return If you are the decedent's spouse filing a joint return with the decedent, file only the tax return to claim the refund. Where to file 2012 tax return If you are the personal representative and the return is not a joint return filed with the decedent's surviving spouse, file the return and attach a copy of the certificate that shows your appointment by the court. Where to file 2012 tax return (A power of attorney or a copy of the decedent's will is not acceptable evidence of your appointment as the personal representative. Where to file 2012 tax return ) If you are filing an amended return, attach Form 1310 and a copy of the certificate of appointment (or, if you have already sent the certificate of appointment to IRS, write “Certificate Previously Filed” at the bottom of Form 1310). Where to file 2012 tax return If you are not filing a joint return as the surviving spouse and a personal representative has not been appointed, file the return and attach Form 1310. Where to file 2012 tax return Other Tax Information Discussed below is information about the effect of an individual's death on the income tax liability of the survivors (including widows and widowers), the beneficiaries, and the estate. Where to file 2012 tax return Tax Benefits for Survivors Survivors can qualify for certain benefits when filing their own income tax returns. Where to file 2012 tax return Joint return by surviving spouse. Where to file 2012 tax return   A surviving spouse can file a joint return for the year of death and may qualify for special tax rates for the following 2 years, as explained under Qualifying widows and widowers, later. Where to file 2012 tax return Decedent as your dependent. Where to file 2012 tax return   If the decedent qualified as your dependent for a part of the year before death, you can claim the exemption for the dependent on your tax return, regardless of when death occurred during the year. Where to file 2012 tax return   If the decedent was your qualifying child, you may be able to claim the child tax credit or the earned income credit. Where to file 2012 tax return To determine if you qualify for the child tax credit, see the instructions for Form 1040, line 51; Form 1040A, line 33; or Form 1040NR, line 48. Where to file 2012 tax return To determine if you qualify for the earned income credit, see the instructions for Form 1040, lines 64a and 64b or Form 1040A, lines 38a and 38b. Where to file 2012 tax return Qualifying widows and widowers. Where to file 2012 tax return   If your spouse died within the 2 tax years preceding the year for which your return is being filed, you may be eligible to claim the filing status of qualifying widow(er) with dependent child and qualify to use the married-filing-jointly tax rates. Where to file 2012 tax return Requirements. Where to file 2012 tax return   Generally, you qualify for this special benefit if you meet all of the following requirements. Where to file 2012 tax return You were entitled to file a joint return with your spouse for the year of death—whether or not you actually filed jointly. Where to file 2012 tax return You did not remarry before the end of the current tax year. Where to file 2012 tax return You have a child, stepchild, or foster child who qualifies as your dependent for the tax year. Where to file 2012 tax return You provide more than half the cost of maintaining your home, which is the principal residence of that child for the entire year except for temporary absences. Where to file 2012 tax return Example. Where to file 2012 tax return William Burns' wife died in 2010. Where to file 2012 tax return William has not remarried and continued throughout 2011 and 2012 to maintain a home for himself and his dependent child. Where to file 2012 tax return For 2010, he was entitled to file a joint return for himself and his deceased wife. Where to file 2012 tax return For 2011 and 2012, he qualifies to file as a qualifying widower with dependent child. Where to file 2012 tax return For later years, he may qualify to file as a head of household. Where to file 2012 tax return Figuring your tax. Where to file 2012 tax return   Check the box on line 5 (Form 1040 or 1040A) under Filing Status on your tax return. Where to file 2012 tax return Use the Tax Rate Schedule or the column in the Tax Table for Married filing jointly, which gives you the split-income benefits. Where to file 2012 tax return   The last year you can file jointly with, or claim an exemption for, your deceased spouse is the year of death. Where to file 2012 tax return Joint return filing rules. Where to file 2012 tax return   If you are the surviving spouse and a personal representative is handling the estate for the decedent, you should coordinate filing your return for the year of death with this personal representative. Where to file 2012 tax return See Joint Return under Final Income Tax Return for Decedent—Form 1040, earlier. Where to file 2012 tax return Income in Respect of a Decedent All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent. Where to file 2012 tax return If the decedent is a specified terrorist victim (see Specified Terrorist Victim, earlier), income received after the date of death and before the end of the decedent's tax year (determined without regard to death) is excluded from the recipient's gross income. Where to file 2012 tax return This exclusion does not apply to certain income. Where to file 2012 tax return For more information, see Publication 3920. Where to file 2012 tax return How To Report Income in respect of a decedent must be included in the income of one of the following. Where to file 2012 tax return The decedent's estate, if the estate receives it. Where to file 2012 tax return The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it. Where to file 2012 tax return Any person to whom the estate properly distributes the right to receive it. Where to file 2012 tax return If you have to include income in respect of a decedent in your gross income and an estate tax return (Form 706) was filed for the decedent, you may be able to claim a deduction for the estate tax paid on that income. Where to file 2012 tax return See Estate Tax Deduction, later. Where to file 2012 tax return Example 1. Where to file 2012 tax return Frank Johnson owned and operated an apple orchard. Where to file 2012 tax return He used the cash method of accounting. Where to file 2012 tax return He sold and delivered 1,000 bushels of apples to a canning factory for $2,000, but did not receive payment before his death. Where to file 2012 tax return The proceeds from the sale are income in respect of a decedent. Where to file 2012 tax return When the estate was settled, payment had not been made and the estate transferred the right to the payment to his widow. Where to file 2012 tax return When Frank's widow collects the $2,000, she must include that amount in her return. Where to file 2012 tax return It is not reported on the final return of the decedent or on the return of the estate. Where to file 2012 tax return Example 2. Where to file 2012 tax return Assume the same facts as in Example 1, except that Frank used the accrual method of accounting. Where to file 2012 tax return The amount accrued from the sale of the apples would be included on his final return. Where to file 2012 tax return Neither the estate nor the widow would realize income in respect of a decedent when the money is later paid. Where to file 2012 tax return Example 3. Where to file 2012 tax return On February 1, George High, a cash method taxpayer, sold his tractor for $3,000, payable March 1 of the same year. Where to file 2012 tax return His adjusted basis in the tractor was $2,000. Where to file 2012 tax return George died on February 15, before receiving payment. Where to file 2012 tax return The gain to be reported as income in respect of a decedent is the $1,000 difference between the decedent's basis in the property and the sale proceeds. Where to file 2012 tax return In other words, the income in respect of a decedent is the gain the decedent would have realized had he lived. Where to file 2012 tax return Example 4. Where to file 2012 tax return Cathy O'Neil was entitled to a large salary payment at the date of her death. Where to file 2012 tax return The amount was to be paid in five annual installments. Where to file 2012 tax return The estate, after collecting two installments, distributed the right to the remaining installments to you, the beneficiary. Where to file 2012 tax return The payments are income in respect of a decedent. Where to file 2012 tax return None of the payments were includible on Cathy's final return. Where to file 2012 tax return The estate must include in its income the two installments it received, and you must include in your income each of the three installments as you receive them. Where to file 2012 tax return Example 5. Where to file 2012 tax return You inherited the right to receive renewal commissions on life insurance sold by your father before his death. Where to file 2012 tax return You inherited the right from your mother, who acquired it by bequest from your father. Where to file 2012 tax return Your mother died before she received all the commissions she had the right to receive, so you received the rest. Where to file 2012 tax return The commissions are income in respect of a decedent. Where to file 2012 tax return None of these commissions were includible in your father's final return. Where to file 2012 tax return The commissions received by your mother were included in her income. Where to file 2012 tax return The commissions you received are not includible in your mother's income, even on her final return. Where to file 2012 tax return You must include them in your income. Where to file 2012 tax return Character of income. Where to file 2012 tax return   The character of the income you receive in respect of a decedent remains the same as it would have been to the decedent if he or she were alive. Where to file 2012 tax return If the income would have been a capital gain to the decedent, it will be a capital gain to you. Where to file 2012 tax return Transfer of right to income. Where to file 2012 tax return   If you transfer your right to income in respect of a decedent, you must include in your income the greater of: The amount you receive for the right, or The fair market value of the right you transfer. Where to file 2012 tax return   If you make a gift of such a right, you must include in your income the fair market value of the right at the time of the gift. Where to file 2012 tax return   If the right to income from an installment obligation is transferred, the amount you must include in income is reduced by the basis of the obligation. Where to file 2012 tax return See Installment obligations, later. Where to file 2012 tax return Transfer defined. Where to file 2012 tax return   A transfer for this purpose includes a sale, exchange, or other disposition, the satisfaction of an installment obligation at other than face value, or the cancellation of an installment obligation. Where to file 2012 tax return Installment obligations. Where to file 2012 tax return   If the decedent sold property using the installment method and you are collecting payments on an installment obligation acquired from the decedent, use the same gross profit percentage the decedent used to figure the part of each payment that represents profit. Where to file 2012 tax return Include in your income the same profit the decedent would have included had death not occurred. Where to file 2012 tax return For more information, see Publication 537, Installment Sales. Where to file 2012 tax return   If you dispose of an installment obligation acquired from a decedent (other than by transfer to the obligor), the rules explained in Publication 537 for figuring gain or loss on the disposition apply to you. Where to file 2012 tax return Transfer to obligor. Where to file 2012 tax return   A transfer of a right to income, discussed earlier, has occurred if the decedent (seller) sold property using the installment method and the installment obligation was transferred to the obligor (buyer or person legally obligated to pay the installments). Where to file 2012 tax return A transfer also occurs if the obligation was canceled either at death or by the estate or person receiving the obligation from the decedent. Where to file 2012 tax return An obligation that becomes unenforceable is treated as having been canceled. Where to file 2012 tax return   If such a transfer occurs, the amount included in the income of the transferor (the estate or beneficiary) is the greater of the amount received or the fair market value of the installment obligation at the time of transfer, reduced by the basis of the obligation. Where to file 2012 tax return The basis of the obligation is the decedent's basis, adjusted for all installment payments received after the decedent's death and before the transfer. Where to file 2012 tax return   If the decedent and obligor were related persons, the fair market value of the obligation cannot be less than its face value. Where to file 2012 tax return Specific Types of Income in Respect of a Decedent This section explains and provides examples of some specific types of income in respect of a decedent. Where to file 2012 tax return Wages. Where to file 2012 tax return   The entire amount of wages or other employee compensation earned by the decedent but unpaid at the time of death is income in respect of a decedent. Where to file 2012 tax return The income is not reduced by any amounts withheld by the employer. Where to file 2012 tax return If the income is $600 or more, the employer should report it in box 3 of Form 1099-MISC, Miscellaneous Income, and give the recipient a copy of the form or a similar statement. Where to file 2012 tax return   Wages paid as income in respect of a decedent are not subject to federal income tax withholding. Where to file 2012 tax return However, if paid during the calendar year of death, they are subject to withholding for social security and Medicare taxes. Where to file 2012 tax return These taxes should be included on the decedent's Form W-2 along with the taxes withheld before death. Where to file 2012 tax return These wages are not included in box 1 of Form W-2. Where to file 2012 tax return   Wages paid as income in respect of a decedent after the year of death generally are not subject to withholding for any federal taxe