Need to file FIL's 2014 taxes and don't know if have everything! Stressing out.

[Michigan120503]

What is the name of your state (only U.S. law)? Michigan

My FIL has cancer and has been in/out of the hospital since the beginning of the year. He's now in a nursing home, pretty much incoherent, and not expected to live much longer. We assume he has not gotten his taxes done, as he's had other things on his mind these past couple months. Anyway, we gathered all the paperwork we could find at his place yesterday, and after sifting thru it I've found W2s for SSA and a monthly annuity payment, 2014 property tax payment records, a couple different banks' statements, safety deposit box renewal receipt, heating bill receipts (propane tank fills) and a boatload of medical statements and cashier check copies of payments (some? all?). Since he didn't have much income - maybe $15K total - is it even worth going thru the medical bills and out of pockets, or just focus on the income and possible Home Heating Credit? Can't find records from previous years' taxes, so don't know what he's done before...if he did them himself or had someone do them, etc. I am stressing out since the deadline is only 10 days away! And after his death we'll have to deal with the final tax return, but we'll cross that bridge later. <sigh>

 

[LdiJ]

What is the name of your state (only U.S. law)? Michigan

My FIL has cancer and has been in/out of the hospital since the beginning of the year. He's now in a nursing home, pretty much incoherent, and not expected to live much longer. We assume he has not gotten his taxes done, as he's had other things on his mind these past couple months. Anyway, we gathered all the paperwork we could find at his place yesterday, and after sifting thru it I've found W2s for SSA and a monthly annuity payment, 2014 property tax payment records, a couple different banks' statements, safety deposit box renewal receipt, heating bill receipts (propane tank fills) and a boatload of medical statements and cashier check copies of payments (some? all?). Since he didn't have much income - maybe $15K total - is it even worth going thru the medical bills and out of pockets, or just focus on the income and possible Home Heating Credit? Can't find records from previous years' taxes, so don't know what he's done before...if he did them himself or had someone do them, etc. I am stressing out since the deadline is only 10 days away! And after his death we'll have to deal with the final tax return, but we'll cross that bridge later. <sigh>

There is almost no chance that he is actually going to owe any tax based on what you have said so far. I would recommend that you file an extension for him and deal with the tax issues later.

 

[Michigan120503]

Well, I just filed for an extension on the Federal return....from what I can tell I don't think I need to send in an extension request to the state of MI? I'm assuming he won't owe any tax due to low income, and it tells me not to send in the form if no tax is owed. But then again I'm not 100% sure as I've never filed for a low income person before. ???? This is confusing.

 

[Michigan120503]

For my FIL's return...since his income is only a little over $14K for last year in SSA and small pension, is it even worth my time to total up his medical out-of-pocket, property tax payments, etc. for last year? I'm assuming since the income is so low, and no tax is probably owed due to that, that any deductions would not factor in. Am I correct?

 

[LdiJ]

For my FIL's return...since his income is only a little over $14K for last year in SSA and small pension, is it even worth my time to total up his medical out-of-pocket, property tax payments, etc. for last year? I'm assuming since the income is so low, and no tax is probably owed due to that, that any deductions would not factor in. Am I correct?

You are correct on the federal level. If he is going to zero out without using any itemized deductions then there is no point in dealing with itemized deductions. However, it can be different on the state level and I don't practice in MI so I cannot tell you for sure that you won't need anything else for MI.