Video instructions and help with filling out and completing Which 1041 Schedule I 2019

Instructions and Help about Which 1041 Schedule I 2019

Today for a harbor financial online.com I want to talk about the federal inheritance tax laws and rules when filing a return this is a really technical area of tax that can be very confusing when preparing to return so I'm gonna try to walk through the the big parts of this and try to simplify it for you as much as I can I do have a lot of experience and dealing with gift taxes and inheritance taxes so I again I'm gonna try to break this down in a way that you guys can understand out there the first thing I want to cover is when you you are a beneficiary and you are left with you know money and assets from someone else you are required to report that on your tax return a lot of people have you know misconception of this that they can get out of all this money left behind to them with you know interest stocks cash and not worry about the tax implications of it and that's not true you do have to file it on your return and you all get taxed as if it was your money to begin with so that's important to know so when you're filing your 1040 it will take all those statements that you received whoever would be the you know the administrator of that person's assets would be able to provide you with the statements you need to prepare your return since you'll be paying tax on that now there's two different things here we have someone who is receiving these items cash stocks dividends interest and then you have if you're receiving an estate now if you're if you're receiving an estate from someone from them past in a way you have to actually file another form which is a 1041 which I'm gonna bring up the form right now to show you this 1041 is a separate form from your 1040 but you can't buy all of this online as well and I'm gonna zoom in here a little bit for you guys so here if you're the beneficiary of an entire estate you'll be filling out all these different areas but when you when you complete this online it makes it much easier you're just gonna be filling out you know one box and with a variety of questions but they break it down into a way that's easy to understand so it will populate all these different boxes going down the form but this is if you received an estate a legal estate which is different just from receiving you know cash or stocks or bonds something like that those items will just be recorded on your form 1040 bring out that real quick so here's your 1040 that you would report those other items on that I just spoke about and the other thing I want to cover here real quick when you're the beneficiary of someone you are required upon their death you are required to file the final return for them and this isn't the case if they were entitled a refund you're gonna file this form 1310 and this will allow you to receive that refund that they were entitled to so that's important to know and again you can file this online this 1310 and you'll just attach this to the form 1040 so it all goes together so we have two different things here we have the estate return that you have to file if that's in a state but if you're just receiving goods assets then you file the 1040 attaching this 1310 so you're entitled to that refund so again it gets pretty technical so I'm trying to make it as easy as possible for you guys regarding this I did want to go over gift taxes with you guys today because it kind of ties into the whole subject so we're gonna cover that real quick I'll go more into detail on gift taxes in one of my future videos so let me find the form looking for here and again at any point on our tax return on our tax like Harbor Financial online.com you can read more about the federal inheritance tax laws and filed a return rate on here with all the you know attach schedules and forms that I went over okay so give taxes here I'm gonna go over this real quick I'll cover it further in a later video you are allowed to give someone a gift up to twelve thousand dollars without you being taxed on it the person receiving the gift doesn't pay the tax but you will pay the tax for a married couple you each are allowed to give up to twelve thousand so actually you can give away twenty four thousand items that won't be taxed and you could give more than this would be let's sound over this real quick it would be money given to help pay for tuition or medical expenses to someone and you won't be taxed on that so you can go over the amount gifts to your spouse you're not going to be taxed on gifts to a political organization a donation you won't be taxed on and gifts to charities so you don't have that limit that we have here right on the screen so you can see it's we're not Beach here so those are the areas of inheritance tax and estate tax they want to cover in today's video if you have any questions please send me an email at expert at Harbor financial online.com or you can check out our website I'll bring that up for you check out our website we do have other areas that you can take a look at but we have a page devoted just to federal inheritance tax laws that should be able to help you out quite a bit once you