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Filing tax returns as an executor in Connecticut

On Behalf of | Aug 31, 2022 | Estate law |

An executor or estate administrator in Connecticut has several roles that all point towards distributing assets to the decedent’s beneficiaries. But, this can’t happen before things like taxes and any outstanding debts are sorted. For taxes, there’s a specific timeline that the executor or administrator needs to follow.

Preparation for filing the final tax returns

The executor or administrator will file estates/probate tax returns as if the deceased were still alive and doing it on their own. But, additional documents may be required, including:

  • A copy of the death certificate
  • All tax returns filed by the decedent during their lifetime
  • Documentation of any income received by the estate after the date of death
  • Any records related to expenses paid out by the estate, like funeral and burial costs

Forms needed and time limits

The type of form the executor will file will depend on whether they are dealing with the state or federal government. For the federal income tax return, the executor will file Form 1041. This form is also filed when an estate has lost money, which can happen if the deceased had stocks or other investments that went down in value after their death. The due date for this form is the 15th day of the fourth month after the date of death.

The state of Connecticut requires all executors to file Form CT-706 nine months after the date of death of the decedent. The only exception to this rule is if the deceased left everything to a surviving spouse or registered domestic partner, in which case the return can be filed up to two years after the date of death. However, even in this situation, interest will accrue on any taxes owed starting from the original due date of nine months after death.

Federal estate taxes are only owed if the value of the estate exceeds $12.06 million as of 2022. For the state, on the other hand, the limit is $9.1 million as of 2022. The federal tax rate is 40%, while that of Connecticut ranges between 10.8 to 12%. So, if the decedent’s assets are worth $12.06 million or more, after paying 40% of that value to the federal government in estate taxes, they will pay up to 12% in state estate taxes to Connecticut.