Return rejected due to dependent being deceased.

[essorley]

I have a client that has claimed her mother as a dependent for several years.  The mother lived with the client and the client was sole caregiver.  The mother passed away in May 2017.  I just completed the clients 2017 return and it is being rejected because the mother's SS# is showing that she is deceased.  Am I wrong in thinking that the client can still claim HH for 2017 claiming the mother?

[abctax55 · Accepted solution]

Yep...you're wrong 🙂   The death itself wouldn't preclude claiming the exemption.

The issue is that the death (& her SSN) has been reported to SSA & IRS.  Dead folks SSN's are often snagged for identity theft/fraud - you'll need to paper file the return.   

Don't forget Form ???? explaining why you can't efile (Lacerte give a nice diagnostic to remind me of that)

[essorley]

So I can paper file as head of household?

[abctax55]

Depends on all the facts...all I am saying is that the SSN has been "tagged" due to death & Efiling is not an option.

[TaxGuyBill]

Nothing in your post indicates Head of Household would be disqualified, so if the client meets the requirements, Head of Household is acceptable.

[Marc-TaxMan]

I just efiled 1040 for a decedent without hiccup.

[abctax55]

I've had some go thru, and others rejected.   Maybe has something to do with the time line between DOD & filing?

[Marc-TaxMan]

The 2017 1040 I efiled 2 days ago died 4/2017, on 2016 extension.  efiled 2016 as deceased

[sjrcpa]

MFJ? I have a single person who died 4/2017, on 2016 extension and I could not get the 1040 to efile. The MD return would. Deceased taxpayer returns seem to be hit or miss for efiling for me. I can't recall the last time I had one with a deceased dependent.