My name is Miranda Chick and I'm a CPA. Right now, we're going to talk about estate tax deductions. You'll need IRS Form 706, the estate tax return. This return is for executives of a decedent's estate to calculate the taxes due to the IRS on the entire estate. This form is not used by beneficiaries to receive their share of the estate. You can find Form 706 on the IRS's website at irs.gov. In case your computer has crashed, you can also call the IRS's toll-free number, 800-XXX-XXXX, and they will mail a copy to you. Examples of deductions include expenses of the estate, such as mortgages and debts, as well as funeral expenses. Other deductible items include losses suffered during the administration of the estate, like theft or fire damage that wasn't covered by insurance. You can also deduct any requests made from the value of the estate. All these deductions aim to reduce the value of the estate, so taxes are calculated based on the net amount. However, please keep in mind that these are general guidelines, and it's always best to consult an experienced financial advisor to understand how these deductions may specifically affect your circumstances.
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When to file Instructions 706 Form: What You Should Know
If a state or Local Form 706 was filed, you must provide us with: A signed copy of the original federal Form 706 A copy of the return on which your tax due is computed A statement from a responsible person (such as an employee or your agent) stating that he/she has full authority to receive and accept any refund or credits or other additional tax withheld under the Internal Revenue code and that these returns are true, correct and complete. Items 34, 36 — You can obtain proof of filing for each tax year. Form 940, United States Individual Income Tax Return This is the most common state-level tax form. If you are filing an Individual Income Tax return in a County or a State within the United States which requires an Advance Refund Certificate, then you must file... (Excerpt from Form 2106) (Excerpt from Form 1040) You must file Form 1040 before the 2nd of the month following the end of your taxable year. You don't have to file Form 1040 for any year in which you were self-employed, unless the tax is due. See Schedule  and Instructions for Line 28 of Form 2106 If any of the following applies to your application for a 1040A or 1040EZ: • You did not file Form 1040 (for the last taxable year) A credit was allowed for the failure to file a Schedule C (Form 843) or Schedule C-EZ (Form 1040).  See Forms 945, 948, 961, 965, 967 (e) and 971 (f) (2) if you were required to file a Schedule C (Form 843) or Schedule C-EZ (Form 1040) (2) for any year, but had no actual tax to pay for the last taxable year. (3) If you were required to file Line 26 as an Independent Payee of an estate, but no Form 941 was filed A credit was allowed for the failure to file an original or amended Form 1040. (4) If you are self-employed, or married to an independent, then you may be classified as part of your spouse's estate If you don't make Form 941, file it by the 15th of the month following your taxable year.
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