Q: Do I owe taxes on deceased husband's retirement benefits and SSA income?

A: You typically need to pay federal taxes on both your deceased husband's retirement benefits and potentially on a portion of your Social Security benefits, depending on your total income. The retirement benefits of $449.61 monthly from the Missouri school district are considered taxable income to you as the beneficiary, even though your husband opted not to have taxes withheld. This means you may need to make quarterly estimated tax payments or potentially face a tax bill when filing your annual return.

Regarding your Social Security benefits, these may be partially taxable at the federal level if your combined income exceeds certain thresholds. Combined income includes your adjusted gross income, non-taxable interest, plus half of your Social Security benefits. For a single filer, if this amount exceeds $25,000, up to 50% of your benefits could be taxable, and if it exceeds $34,000, up to 85% might be subject to federal tax.

For Missouri state taxes, the rules differ somewhat from federal guidelines. Missouri offers some exemptions for retirement benefits and Social Security income, depending on your total income level. Since tax situations involving survivor benefits can become complex, consulting with a tax professional familiar with Missouri tax laws would help ensure you're meeting all tax obligations while taking advantage of any exemptions you might qualify for. Remember to keep detailed records of all income sources to make tax preparation more straightforward when filing season arrives.