Welcome to another episode of the Dr. Friday Radio Show! In this show, Dr. Friday shares the latest tax updates, answers callers questions, and talks over the following topics:
What Is the Best Business Type for Taxes?The Difference Between Each Business TaxWhy Have I Not Received My Tax Return?Reasons Why You May Not Have Received Your Stimulus CheckHow Many Years of Taxes You Need To File To Get Back Into Compliance With the IRSDo You Have An IRS Issue That You Need Help With?Where To Find the Best Social Security AdviceWhat Taxes Payments To Make If You've Sold Property or Inherited PropertySecond Quarter Payments Due On June 15, 2021Do You Need Help With Tax Representation?The Best Way To Convert To A Roth IRA From An IRA
and much more!
No, no, no, she's not a medical doctor, but she can sure cure your tax problems or your financial woes. She's the how-to girl. It's the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.
Dr. Friday 0:29
Good day, I'm Dr. Friday and the doctor is in the house. We are here live on this wonderfully warm, boy is it warm, Saturday. And life is definitely getting interesting. I'm sure some of you guys may even have some questions. Maybe you've gotten some of the letters from the IRS. We've been really busy here with either IRS or state. A lot of times people haven't done quite everything, like renewed their annual reports or their business licenses. And they're getting those notices. So if you've got a question on those or anything else, all you have to do is give me a holler. Meanwhile, it looks like we have Mike on the line. Let's go ahead and hit Mike.
Thank you for taking my call.
Dr. Friday 1:10
Thanks for calling. What can I do for you?
I'm an executor of a will and the deceased person died in February 2020. And only had ten months of taxable income of $1,027. I have an employer ID number for that account. Do I need to file since it was only $1,027?
Dr. Friday 1:36
Well, I will tell you that normally when I'm handling them, I'll always filed the last year no matter what. It will most likely be a zero effect, you know, obviously, unless there was some withholding on that money. But more just because on the tax return, it will ask you for the data passing and you can put that on there and close those forms off.
Dr. Friday 1:55
I know that the IRS is, you know, Social Security and everything has already been turned off if they hadn't even, but they've been probably notified. But it's just part of my process, I always just file a final. And if they were receiving any kind of Medicare benefits, maybe they were in a nursing home or something if there was a Medicare, I always get a waiver from them as well with filing that so that way I make sure that I can close those off. And then you know, I don't know the size of the estate or anything, just those but it's not mandated. You don't have to with that small dollar amount, you know.
Dr. Friday 2:27
Unless it was 1099 miscellaneous would have been the only time that I can think of where there may have been taxes due if they were working self-employed. Otherwise regular income coming in ordinary income or capital gains income, there would be no reason that you have to file it.
Okay, thank you. I had closed everything off, you know, a couple of weeks after she had passed away, so.
Dr. Friday 2:50
Yeah, and then that's typical most the time, you know, that is the case. As I said, it's probably more on my side. You know, obviously I do living for taxes. So I just make sure all those things are closed off. But again, f there's nothing, if there's no tax liability, there's no mandate for you to