I'm really sorry for your loss, Dmitri. This is such a difficult situation to navigate while you're grieving. From my experience as a tax preparer, you're absolutely right that you can file married filing jointly for their final return since they were married at the time of death. Here are a few additional things to keep in mind: 1. Make sure to get a federal tax ID number (EIN) for each estate if you haven't already - you'll need these for any estate tax returns or if the estates generate income after death. 2. Check if they had any estimated tax payments due for 2024. As executor, you'll need to make those payments to avoid penalties on their final return. 3. Don't forget about state taxes - you'll likely need to file final state returns as well, and some states have different rules for deceased taxpayers. 4. If they had any joint bank accounts or investment accounts, make sure you understand which income gets reported on their final personal return versus potential estate returns. The IRS Publication 559 has detailed guidance on tax issues for survivors, decedents, and estates. It's dense reading but covers scenarios exactly like yours. You're doing the right thing by being thorough about this.

I'm sorry for your loss, Dmitri. This is definitely a complex situation, but you're on the right track asking these questions. One important detail I haven't seen mentioned yet - since your sister passed in March and her husband in October, you'll need to be careful about how you handle any income or deductions that occurred between those dates. Income that your brother-in-law received between March (when your sister died) and October (when he passed) should still be included on their joint final return, but you'll want to make sure you're not double-counting anything. Also, if either of them had health insurance premiums or medical expenses that were paid after your sister's March death but before your brother-in-law's October death, those can still be deducted on the joint return since they were still married filing jointly for the full tax year. The IRS Form 1041 instructions have a helpful section on "Income in Respect of a Decedent" that might be relevant if they had any retirement accounts or other assets that generated income after death. It's worth reviewing even if you end up not needing to file estate returns. You're doing a great job handling this responsibility during such a difficult time.

can someone clarify wat counts as "deferred compensation" for form 990? our ED has a 457b plan and im not sure if thats supposed to go in subpart F or somewhere else?

This is such a helpful thread! I'm dealing with a similar situation as our nonprofit's treasurer. One thing I'd add about subpart F is to make sure you're being consistent year over year with how you calculate and report these benefits. We had an issue where we were estimating health insurance premiums one way in 2022 and a completely different way in 2023, which created some confusing variances when our auditor reviewed the forms. Now we keep a detailed worksheet that breaks down exactly how we calculate each component of subpart F - retirement contributions, health premiums, life insurance, etc. Also, don't forget that if your organization provides any kind of housing allowance or parsonage allowance to clergy, those typically need to be included in subpart F as well, even though they might be excludable from income tax. The key is documenting your methodology so you can explain it to auditors or the IRS if needed. Good luck with your filing!

This is why I stopped day trading and switched to ETFs with occasional rebalancing. The tax headaches weren't worth the small gains I was making. Now I sleep better and spend way less time on tax prep.

I'm dealing with a very similar situation and wanted to share what I learned after consulting with a tax professional. The key insight is that when your disallowed wash sales exceed your realized losses, you're essentially "prepaying" taxes on losses that will benefit you in future years. Here's what helped me understand it: Think of the excess disallowed wash sale amount as an "investment" in higher cost basis for your replacement shares. When you eventually sell those shares (hopefully for a gain), your tax liability will be lower because of that higher basis. For your specific situation with $17,850 disallowed vs $14,200 realized loss, you'll report both amounts exactly as shown on your 1099B using the aggregation method. The $3,650 difference ($17,850 - $14,200) represents basis adjustments that are sitting in your current positions, waiting to reduce future gains or increase future losses when you sell. One practical tip: if you're planning to continue active trading, consider opening a separate account specifically for longer-term holds to avoid inadvertently triggering wash sales on positions you want to keep. This has helped me avoid some of the cascading wash sale issues others have mentioned.

Random question - can I use blue ink for the correction or does it have to be black? I know the IRS is picky about some of these details.

Thanks everyone for all the helpful advice! I went ahead and made the correction using the single line method that Paloma mentioned - drew a clean line through the wrong number, wrote the correct amount above it, and initialed with the date. The correction was pretty minor (just a few hundred dollars difference in my totals), so I didn't include an explanatory note. I also ended up checking my work with taxr.ai before submitting, and it confirmed that my correction was done properly and didn't find any other issues. Really glad I found this thread before panicking and ordering a new form! Submitting everything today and feeling much more confident about it.

My company handles this by having a 14-day rule. If an employee works in a state for less than 14 days in a calendar year, we don't bother with withholding for that state. If it's over 14 days, we set up proper withholding. This isn't technically 100% compliant with every state's laws, but it strikes a balance between administrative sanity and reasonable compliance. We document everything so if there's ever an audit, we can show our good-faith effort to comply with the complex patchwork of state laws. Different companies have different risk tolerances. Your friend's husband's company might be taking a more aggressive position, which isn't uncommon.

This is such a timely discussion! I'm a freelance IT consultant who travels to client sites across multiple states, and I've been wrestling with this exact issue for years. What I've learned through painful experience is that the "official" rule and the "practical" reality often don't align. Technically, yes, you're supposed to file in every state where you earn income, but the enforcement and thresholds vary wildly. One thing I'd add to the great advice already shared: keep meticulous records of your travel dates and work locations. Even if you decide to take a more conservative approach like Ian's 14-day rule, having detailed documentation is crucial if you ever face an audit. Also, don't forget about potential double taxation issues. Some states don't give full credit for taxes paid to other states, so you could end up paying more than if you just filed in your home state. This is where those reciprocity agreements Lucas mentioned become really valuable. For Eleanor's original question about whether most companies actually follow through - in my experience, it's about 50/50. Larger companies with dedicated tax departments usually comply, smaller companies often take calculated risks. Your tax advisor and legal counsel are being appropriately cautious, which is probably the right approach for a business owner.