Can you file a child tax credit, if both tax payers in family have died?
My parents died in June 2009. My mom died of natural causes on 6/2/2009, and my dad committed suicide on 6/20/2009. My parents have carried my child on the taxes in the past. I am on disability, and they basically provided for us. I don’t want to do anything dishonest. Its just that they always provided. I have big questions, about my own filing. I got there life insurance policy monies, the house, and a CD with approx $50,000 (these were all in my parents name, prior to their deaths). Basically, the money is gone, the house is still in probate. The house is paid off and I am the only heir. I am scared to death. I have significant debt from student loans (that are now in default). I got the house remodeled, and spent approx $20,000 on improvements. I’m curious if any of the improvements are eligible as a tax write-off? I’m aware of the energy improvements, and I didn’t get those. I have a very bad back, and rods to prove it. I purchased a hot-tub. Could that be used as a write-off? Basically, is their a way to file these improvements on my parents taxes, since the home is still legally in their name (only for 30 more days or so)? If I am entitled to a refund, the defaulted student loans are going to take it for sure. Is their anyway to prevent that from happening? Can you file something that allows you to get a small portion of your tax return (or negotiate something between me, and the student loan holder)? I am in the process of starting to rehab my student loan. Im worried about my tax liability. I had to take a break after all that I had been through, I paid for my cousin, her husband, and their two kids to go on a cruise. I did that because they did a lot for me when my parents died. They took care of my dad when my mom died, and then me when my dad died. My cousins husband cleaned up the crime scene. I figured it was the least I could do. Could that be considered a gift? Any information would be greatly appreciated, any links that you may know to give me a crash course (with wording I can understand) would be researched.