Can You File Taxes for a Deceased Person?

When an individual passes away, a final federal income tax return covering the period from the start of the year to their date of death is often required. This responsibility falls to a personal representative, who handles gathering information, completing forms, and submitting them to the Internal Revenue Service (IRS).

Determining Filing Responsibility and Requirements

The personal representative responsible for a deceased person’s final tax return is the executor or administrator named in the will or appointed by a court. If no one is formally appointed, a survivor in charge of the decedent’s property can assume this role. The personal representative must ensure all income is reported correctly and any tax due is paid from the estate’s assets.

Whether a final return is necessary depends on the deceased’s gross income, filing status, and age. The IRS establishes specific gross income thresholds each year that trigger a filing requirement. These thresholds vary based on factors like being married, a qualifying widow(er), or being over age 65.

The personal representative must determine the deceased’s filing status. If the individual was single, they will file as single. If married, the surviving spouse can choose to file a joint return for the year of death. For the two years following a spouse’s death, the surviving spouse may be able to use the qualifying widow(er) filing status if they have a dependent child, allowing them to use the more favorable joint return tax rates.

Information and Forms for the Final Return

Preparing the final tax return requires gathering all income statements reporting earnings from January 1 of the year of death up to the date the individual passed away. Necessary documents and information include:

• Form W-2 for wages
• Form 1099s for interest, dividends, retirement distributions, and nonemployee compensation
• Other records of income
• The deceased’s Social Security Number (SSN) and exact date of death

Form 1040: Final Individual Return

The final return is filed using Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR for seniors. The preparer must write “DECEASED,” the decedent’s name, and the date of death at the top of the form. The rest of the form is completed by reporting all income earned during the final tax period and claiming any applicable deductions and credits.

Form 1310: Claiming a Refund

If the final return results in a tax refund, Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, is required. However, this form is not needed for a surviving spouse filing a joint return. A court-appointed representative must attach a copy of the court documents certifying their appointment but does not need to complete all parts of Form 1310. Other individuals claiming the refund must provide their name, address, SSN, and a signature certifying they will pay out the refund according to the laws of their state.

Form 56: Notifying the IRS

Form 56, Notice Concerning Fiduciary Relationship, should be filed to formally notify the IRS of the personal representative’s authority. Filing Form 56 ensures that the personal representative receives any IRS notices or correspondence regarding the final return or other tax issues, rather than them being sent to the deceased’s last known address. The form requires the representative’s contact information and a description of their authority.

The Filing Process for the Final Return

The personal representative must sign the return in a manner that reflects their role. An appointed executor signs their own name, followed by a title such as “Personal Representative.” If a surviving spouse files a joint return without an appointed representative, they sign the return and write “Filing as surviving spouse” in the signature area for the deceased.

The final tax return can be filed electronically through tax software providers, though paper filing may be required in complex situations, such as when specific forms or attachments are not supported for e-filing. If filing by mail, the completed tax package must be sent to the designated IRS service center for the filer’s location. While a death certificate is not required, attaching a copy can help expedite processing.

After submission, the personal representative should monitor for IRS correspondence. The processing timeline for a refund is similar to a standard return, and the check is issued to the person on Form 1310 or the surviving spouse. If tax is owed, payment from the estate’s assets can be submitted with the return or made online through IRS Direct Pay.

Handling Post-Death Income and Estate Taxes

Tax obligations can continue after the final individual return is filed. Income earned before death is reported on Form 1040, but income generated by the estate’s assets after death belongs to the estate, a separate taxable entity. If the estate earns over $600 in gross income in a year, the representative must file Form 1041, U.S. Income Tax Return for Estates and Trusts, after obtaining an Employer Identification Number (EIN) for the estate.

Income reportable on Form 1041 can come from various sources, such as interest on a savings account, dividends from stocks, or gains from the sale of the deceased’s property. The estate is responsible for paying tax on this income, and the filing of Form 1041 continues for as long as the estate generates income above the threshold and remains open.

A separate consideration is the federal estate tax, a tax on the transfer of assets to heirs, which is reported on Form 706, United States Estate Tax Return. This tax affects only a very small percentage of the population. Due to a substantial federal exemption, only estates with a total value exceeding this high threshold are required to file Form 706.