Taxpayer asks:
I have a problem. I let my son’s father claim us on his taxes and he died on 3/29/08. What do I do to get the rebate back on, at least on my son and myself? Not to sound morbid! But what can I do?
Taxgirl says:
If the return for 2007 was already filed, the rebate will still be processed despite the death (if the return was not filed, it can be filed post-mortem by the decedent’s personal representative). The rebate will be issued in the decedent’s name and become part of his estate.
Ostensibly, your son will be a beneficiary of the estate. I’m assuming that you are not married since you referred to your “son’s father” rather than your husband so it’s probable that you may not receive anything from the estate. However, your son may be a beneficiary and he would benefit from the rebate as an heir.
In theory, you could ask that the personal representative to file an amended return to remove you and your son as a dependent, and then you could file yourself. Without knowing more about your situation, I’ll just say that doesn’t seem like a good option on a number of levels… One, the date for filing has passed and you did not apply for an extension so if you incur a liability, there may be penalties and interest. Two, any rebate that you would be entitled to receive as a result of filing late would be delayed quite a bit while the amended return for the decedent is processed – you would not be allowed to claim your son until the amended return for the decedent has been accepted. And perhaps most important, if there are other heirs, you would likely not have an easy time persuading the personal representative to amend returns that would result in cost to the estate and reduced assets; in fact, the personal representative may be prohibited from doing so (by fiduciary law, not by the IRS).
It’s a tricky situation. If you are not inclined to wait and see what happens, I would suggest that you contact an attorney.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
