My father worked for the USPS as a rural mail carrier, and he retired in 2000 (a year before he died). My mother then started receiving his pension, and her tax preparer retired after the 2014 tax year; he had been using the Simplified Method Worksheet to calculate what part of the pension was taxable. My mother's new tax preparer (someone from H&R Block, who did her return for 2015 and 2016) didn't use the worksheet, and so the entire pension got taxed. I then took over her finances (it became evident that my mother had dementia) and started doing her taxes; however, I didn't know better than to allow her full pension to get taxed (since I just continued to do what I had seen on the previous return).
I just found my mother's 2014 tax return, with the completed Simplified Method Worksheet, and so I just learned my error. So what now?
On her 2024 tax return, do I just resume where things were left in 2014 with regards to the "balance of cost" to be recovered tax free? (I'm presuming that there's no way to make up for the lost years without filing amended returns, but I'd love to be mistaken about that. If by any chance I am, which IRS publication would confirm that?)
Also, it seems certain that not all of my father's retirement contributions will be recovered tax free by the time that my mother dies (which could be any year now). By any chance, can all of the remaining amount be recovered on my mother's final tax return? (If so, in which IRS publication would I find confirmation of that?)
If you've made it this far, that's amazing...and I greatly appreciate any information that anyone can provide.
I just found my mother's 2014 tax return, with the completed Simplified Method Worksheet, and so I just learned my error. So what now?
On her 2024 tax return, do I just resume where things were left in 2014 with regards to the "balance of cost" to be recovered tax free? (I'm presuming that there's no way to make up for the lost years without filing amended returns, but I'd love to be mistaken about that. If by any chance I am, which IRS publication would confirm that?)
Also, it seems certain that not all of my father's retirement contributions will be recovered tax free by the time that my mother dies (which could be any year now). By any chance, can all of the remaining amount be recovered on my mother's final tax return? (If so, in which IRS publication would I find confirmation of that?)
If you've made it this far, that's amazing...and I greatly appreciate any information that anyone can provide.
Statistics: Posted by matt90077 — Wed Jul 17, 2024 11:27 pm — Replies 2 — Views 476