- When an individual passes away, a final income tax return will need to be prepared and filed up to the date of death.
- From the tax year ending 31 March 2023 an executor will need to decide if any reportable income received in the 28 days following death, is included in either the individual’s final income tax return or a return for the Estate.
- Final income tax returns for individuals commonly include NZ superannuation, interest, dividends or rental income.
- Due to illness, some individuals may fall behind in their tax filing obligations prior to their death and it is not uncommon for us to prepare several years of income tax returns together in order to tidy up the deceased’s tax affairs.
- An Estate return covers the period from the day after a person passes away and is required to be filed if it continues to earn income after the person’s death.
- It is not uncommon for individuals to donate to various charities and so it should be remembered to check if all donation receipts have been uploaded with Inland Revenue to obtain donation tax credits on behalf of the deceased which can then be offset against any outstanding tax owing to Inland Revenue.
- If there is no outstanding tax payable to Inland Revenue, then it can be arranged for the donation tax credits to be transferred to the deceased’s Estate.
- We can assist you with all of the above.
