Legal Question in Tax Law in Illinois

Surviving Spouse

I recently lost my wife. Can you please advice on following questions for surviving spouse?

-I am expecting around $100,000 as life insurance benefit. Do I have to pay taxes on this amount. Do I have to report this as income while filing my tax return?

-If I file join return this year-end, do I need special documents from her side other than following forms?

1)W2 form, 2)1099 form for interest and 3)Stock transactions form?

-If I file joint return this year, what should I do in spouse's signature column in 1040 form?

-Do I have to send IRS any type of notice informing her death.

-Can I claim her funural expenses as deductions while filing taxes?


Asked on 9/29/08, 4:18 pm

1 Answer from Attorneys
Cyndi Perez Trostin

Re: Surviving Spouse

I'm very sorry for your loss.

Life insurance benefits are not taxable to the beneficiary and are not reported on the beneficiary's income tax return.

If you file a joint return with your wife, you will need all of her tax records the same as usual. When you file the return, you should state on the top of the front page, "deceased" and then her name, social security number and date of death.

You will sign for her as "surviving spouse" or "representative."

Funeral expenses are not deductible for income tax purposes.

Good luck to you.

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Answered on 9/30/08, 8:32 am


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