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The mother's discretionary income does not matter when looking at the support test. Food, clothing, shelter, education, medical and dental care, recreation, and transportation make up support amount. The amount she saves, gives to charity, gifts the the kids and grandkids, etc., are not considered in determining her support amount. The amount of support for shelter costs takes into account the fair rental value of the lodging, including a reasonable allowance for the use of appliances, utilities, and furniture, not the actual amount spent. So if it would cost the mother $1,000 a month to rent a furnished apartment equivalent to what the daughter is providing, that is the amount used for the 50% support test.

Unless the deceased taxpayer had no assets at the time of death, isn't whoever was the fiduciary for his estate responsible for paying any taxes due before any distributions are made to the beneficiaries?

If she is executor or trustee, isn't she required to administer those entities and satisfy any debts, including tax debts, of the estate before any inheritance payouts? The last thing she would want to happen is to have IRS create a SFR later on and come knocking.

Please revisit Patrick Michael's explanation above and complete a support worksheet. "Support" includes items not paid or having a direct association with the mother's bills so you can't just add up some bills that were paid. The FMV of housing is one such example, and the support worksheet will guide you in its calculation and allocation to the mother because the number of people n the household are factored in.

Support worksheet from Pub 501, page 14 should help you. Sorry, I tried to post with an attachment but the forum wouldn't accept the pdf. Support Worksheet from pub 501.pdf Link to pub 501. The support worksheet is in it. https://www.irs.gov/forms-pubs/about-publication-501

When clients bring their paperwork in; one of the things I look for is interest income. So few have any. That doesn't mean they don't have any retirement plans or investment income; but where is their cushion of ready cash for an emergency. So few have it. I think that Kathy said it best in reference to wants and needs, budgeting, etc. We taught our boys to save from little on. When they got an allowance, they could spend half and half went in the bank. That learning has carried them well into adulthood and nearly to retirement age. I am so proud of them AND their children. I try to counsel my clients in the gentlest of ways. Sixty-five years ago we started life as a young married couple with not much to our name. I am proud to say that we have practiced what we preach and are comfortable now with what we have built. And both still working...just because!

Gross income of $600 or more, required to file. After a stepped up basis?

They have filed 1120-S for 2023? Were they SMLLC that became S-Corps?

She need to talk to an attorney to answer that, my guess is the IRS could seize any property that was separately or jointly owned by deceased spouse. How much balance due are you talking about?

Have you considered filing 1040-X as MFJ to decrease the overall tax liability? Was there any tax savings by filing MFS?

At this point, the only sane advice is to suggest they work with a qualified probate form, local to the locality where any property in the decedent's name is located. There is absolutely zero reason not to use proper representation when the estate may leave a positive balance.

Not sure why she felt obligated to file for him. I have a situation similar to this but the surviving spouse has not filed for him yet as I questioned why she should. Afterall - MFS....Hate to sound like a jerk. But it ain't her problem.

It also applies to most Homeowners Associations. That’s a real problem since many small HOA’s have no idea unless they use an outside professional management company or subscribe to HOA-focused publications.

Remember a lot of people get rich and powerful by keeping the populace poor, stupid and angry.