Retirement/ Estate Tax

Retirement

Saving for retirement is a very important step for many of us seeking our life-long dreams therefore maintaining your plan and understanding the tax implications that come along with contributions as well as withdrawals are equally important.

At Hadrian, our services assist clients with understanding the tax information for retirement plans to ensure they meet the proper filing and reporting requirements.

Estate Tax Returns

There are four tax issues to consider when closing an estate.

  1. Filing of the final 1040 Return: file the decedent’s taxes for the year of his or her death. This final 1040 covers the period from Jan. 1 though through the date of death. When there’s a surviving spouse, the final 1040 can be a joint return filed as if the decedent were still alive as of year’s end. The final joint return includes the decedent’s income and deductions up to the time of death plus the surviving spouse’s income and deductions for the entire year.
  2. Filing of the Decedent’s estate income tax return, where applicable (Form 1041). This is entirely different from the federal estate tax return. If estates with below $600 of annual gross income there is no need for Form 1041. Also 1041 is not required when decedent’s income producing assets bypass probate and pass through to surviving spouse or heirs by contract or other operation of law.
  3. Filing of the Estates estate tax return (U.S. Estate Tax return): The Federal estate tax return is filed on Form 706 (assuming no sizable gifts are made prior to death), no estate tax is due and Form 706 is not required. Our CPA, can help broadly with this!
  4. Final Administrative Details: If filing Form 1041 and/or 706, obtain for the estate a federal employer identification number (EIN), this will be analogous to the federal Social Security number. Your bank will ask for this when opening an account in the name of the estate with funds transferred from the Decedent’s accounts. Request an EIN by completing SS-4 (application for employer identification number), which may be downloaded from the Internal Revenue Service website at www.irs.gov. Unfortunately, this is just the beginning. You will also need to file Form 56 (Notice of Fiduciary Relationship) so the IRS will know who is acting on behalf of the estate regarding tax matters. Not done yet! You may be required to file a state income tax return and possibly a state Death Tax return. We can Help!