I am running late on doing my taxes, and I have yet to file my 2004 tax return. Been having a lot of problems with money management and organization. And since my taxes were withheld on my paychecks, I knew that I didn't owe the IRS anything so I didn't think they would hassle me over money they owed me.

My mother died in late 2004 of cancer, after I was her caretaker for the prior two years. She made some money before she died from Social Security (only 4 $800 payments until she died), as well as less than $100 a month in insurance agent commissions, which continued to come even though the company knew that she had died. I do not know if taxes were withheld from those checks, or if she submitted her own taxes at end of year. She was also a tax preparer, ironically. However, the IRS sent a letter regarding her, which stated that she owed taxes for some items she had sold online, which I know nothing about. No tax return was filed for her for that year, obviously.

Now that I am doing my late 2004 return, since I took care of her and paid her expenses and the bills, ect., I want to claim her as a dependant. Can I do that, despite her Social Security checks (only 4 of them totalling $3200) and the commission checks (less than $1200 for the year)?

you will have to file a return for her as deceased. but you can claim her as a dependent. also since you are using her as a dependent she cannot claim herself as a dependent on her own return. so she will owe taxes. taxes should be paid by any proceeds of the estate.

I see. Well thank you. But if there were no estate to speak of? She left only a life insurance policy, and furniture, clothes and items which I sold (for less than $600 total, and the rest which I gave to charity. Would I be expected to pay her taxes from that money?

no her estate isnt large enough unless she had a really big policy. you will have to file on her income prior to death

I see. Thank you.

YW