After a long battle with illness, our client’s husband passed. We worked with the client to update accounts and recoup overpayment of taxes.
After Carol’s husband passed, we reviewed cash flow and updated accounts now that she would be filing taxes individually. One of the first important steps was changing her account from an individual account to a trust to avoid probate. We also involved her sons in our meetings to ensure everyone’s comfort level and begin building towards next steps and continuity.
Her late husband’s nonqualified deferred compensation (NQDC) payments were being overtaxed as 1099 Misc. income when taxes were, in fact, already paid on that money while her husband was still employed. Fifteen thousand dollars of previously paid tax were repaid to Carol for the wrongly coded deferred compensation payments.
