QUESTION
Does my daughter owe state taxes for a period when she was in a coma and why?
Asked on Jul 15th, 2015 on Taxation - Michigan
More details to this question:
I received legal guardianship of my daughter in 2010. She was in a coma with a brain injury. I sued but the state says she owes taxes. Never received any taxes from Federal government. Does she owe?
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
Incompetent people can still have taxable income. To use a current example, the comedian Tyler Perry is legally incompetent from injuries suffered in a car accident. However, I'm sure that he's still receiving millions in residuals and has substantial assets that produce income. If your daughter had taxable income, her guardian needs to file a return and pay the tax out of her assets. Most state income taxes don't have a medical expense deduction, which might eliminate her Federal taxes.
Answered on Jul 20th, 2015 at 12:57 AM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
If she had income, then she owes taxes.
Answered on Jul 15th, 2015 at 4:07 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
If you have sued I suspect you have an attorney and they should be consulted. I cannot answer directly without more information but suspect she, or her representative would have been expected to report taxes on income earned, if any, before the injury and coma.
Answered on Jul 15th, 2015 at 4:07 PM
The question is did she have any taxable income. If she did, then taxes might be owed. Being injured does not bestow a tax exemption on a person.
Answered on Jul 15th, 2015 at 4:05 PM