Out of State deceased parent

[SensibleandHourly]

Good morning, 

One of my clients passed away who resided in Michigan but spent most of 2022 before she passed in September in KY with her only son and daughter-in-law. Does the residency matter at all in this case or can the surviving son still handle her return in KY? 

Thank you!!  

[hankinstax]

Part year residency rules will apply to Mom's personal filing.  If the issue is claiming her as a dependent, the son can do so providing he exceeds the 50% support rule.  A parent is the only dependent who is not required to live with the taxpayer.

[sjrcpa]

Did she actually abandon her Michigan domicile?

[BobKamman]

@sjrcpa      ....before she died, that is  . . .

[SensibleandHourly]

Well, if anything she likely supported him. 😉 But who knows what he might claim at this point. I'm just not sure my role at this time being several states away. 

[SensibleandHourly]

She was 90% in KY from Jan-Sept, with just a few visits back to her residence. Mostly in and out of hospitals and son's home the rest of the time in KY. 

[BobKamman]

Temporary absence, not a change in domicile.  

[sjrcpa]

before she died, that is  . . .

Of course. 😀

[SensibleandHourly]

So just to clarify, does 'Part Year Residency' require a tax preparer in the same state, home state or no state? 😉 I'm also a financial planner and former insurance agent and I'm thinking about the requirement in those worlds to be licensed in the state you give advice. Frankly, I'm not all that interested in doing this return. Do I need to? Can the son's KY preparer complete it just as easily? I'm sure Mom kept prior returns if the son was astute enough to keep them.  

[BobKamman · Accepted solution]

I've done Kentucky returns with no registration.  I don't see the need for a Kentucky return, but even if one is required there is no obligation for you to do it (unless you had a contract with Mom).  Is Michigan one of those states that requires preparer registration?  Most states don't, and it's doubtful they can enforce it if it's just one return for one client.  

[SensibleandHourly]

No, no contract, and no required registration in Michigan. I'm really glad to hear this feedback.  Thank you!  

[Camp1040]

From the information provided, I don't see that the Mom was every a resident of KY, as stated by @BobKamman  and @sjrcpa .

Think about it this way, if your client died in Canada on an extended vacation, would she have to have a tax return for Canada filed?

[SensibleandHourly]

Yes, good way to explain it!