Does my daughter owe state taxes for a period when she was in a coma and why? 6 Answers as of July 20, 2015

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?

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Ronald K. Nims LLC | Ronald K. Nims
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.
Answer Applies to: Ohio
Replied: 7/20/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
If she owes taxes would depend on her income. If she is in a coma would not matter. Did she have income during that time? If she had no income and the state imputed income to her because no return was filed, you can file a tax return with the correct amount. There is not enough information here to know what happened or why.
Answer Applies to: California
Replied: 7/16/2015
Polsinelli Shughart PC | William B. Prugh
Yes, she may owed taxes, and as guardian you may be required to file them to both the state and IRS. However, you may have deductible medical and related expenses which reduce taxable income. I suggest seeing a tax preparer to do the returns the first year, and then you can decide how much professional help is needed thereafter.
Answer Applies to: Missouri
Replied: 7/15/2015
Vandervoort, Christ & Fisher, P.C. | James E. Reed
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.
Answer Applies to: Michigan
Replied: 7/15/2015
Irsfeld, Irsfeld & Younger LLP | Norman H. Green
If she had income, then she owes taxes.
Answer Applies to: California
Replied: 7/15/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    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.
    Answer Applies to: Michigan
    Replied: 7/15/2015
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