Recently widowed, need advice on filing 2021 taxes after husband's death last month

Thank you for your quick response. I didn't realize I could still file jointly and sign for him. That makes sense though since he was alive all of 2021. One follow-up question - for the schedule C businesses that were solely his, do I still complete those since I'm filing jointly? And when I notify SNAP about my situation, what kind of documentation would show my income separately from his if we file jointly?

Yes, you'll need to complete Schedule C forms for all the businesses, including those that were solely his, since you're filing a joint return that covers both of you for the entire tax year. For SNAP documentation, you can create a written statement breaking down which income was yours versus his, and support this with documentation like 1099 forms, business banking statements, or profit/loss statements that show the separation between your business and his. Many SNAP offices are accustomed to working with self-employed individuals and can help guide you on exactly what they need to see to verify your current income situation.

Does it actually help with Schedule C stuff? I've used tax software before but they always seem to struggle with more complex business situations, especially when there's a death involved.

I'm kinda skeptical about AI tax tools... did it actually catch anything specific to your situation that regular tax software wouldn't have? I feel like with something as important as taxes after a death, you'd want a human looking at it.

It absolutely handles Schedule C situations - that was one of the most helpful parts for us since my mom had a small business. It caught several deductions specific to her industry that I wouldn't have known about. For someone who's skeptical, I understand completely. What surprised me was how it identified several issues specific to a final return that TurboTax completely missed. For instance, it flagged medical expenses my father paid for my mom that were actually deductible, and it explained how to handle her outstanding business receivables. It doesn't replace a professional, but it definitely helped me understand what questions to ask and what documents to prepare.

Wait, how does that even work? The IRS phone system is so frustrating but I don't understand how a service can hold your place in line? Is this actually legit?

Sounds too good to be true. I spent 3 hours on hold with the IRS last month only to get disconnected. You're telling me this service actually got you through? Were they helpful with specific tax questions about the deceased's return?

It works by using their system to navigate the IRS phone tree and wait on hold for you. When they're about to connect with an agent, they call you and connect you directly. It's completely legitimate - they don't ask for any personal tax information, they just handle the waiting part. Yes, I was definitely skeptical at first too! But after getting disconnected twice after long waits, I was desperate. The IRS agent I spoke with was extremely helpful - they walked me through how to properly file my dad's final tax return with his small business income and explained which forms I needed to submit to get his tax transcripts. They even helped me understand how to handle some 1099-NECs that arrived after his death.

Thank you for mentioning this! There are actually some outstanding invoices from his business that I'm still trying to collect. How exactly does the "income in respect of a decedent" work? Does it go on my return or do I need to file something separate?

The income in respect of a decedent will still go on your joint 2021 return if you're filing jointly as surviving spouse. For any payments received in 2022, that income would go on your 2022 return (which you'd file as single or qualifying widow(er) depending on your situation). You don't need to file anything separate, but it's good to keep detailed records of when these payments were received. If any large amounts come in after his date of death, you might benefit from consulting with a tax professional as there can be deductions available for any estate taxes paid on that income. This gets a bit complex, but the basic rule is that the income is taxable in the year received, regardless of when it was earned.

This is excellent advice. Also, for the SNAP question - in my experience helping clients, you should definitely file jointly for 2021 since it'll likely save you on taxes. For SNAP, bring your full tax return but also prepare a simple spreadsheet showing just your income sources separate from his. Most caseworkers will appreciate the clarity.