Do You File Taxes for Someone Who Died?

When a person passes away, their tax obligations do not automatically disappear. Specific tax filings are required to settle their financial affairs.

Determining Filing Responsibility

The responsibility for filing taxes on behalf of a deceased individual generally falls to a designated individual known as the personal representative. This role can be filled by an executor, an administrator, or another person legally in charge of the deceased’s property. If a will exists, it typically names an executor to oversee the estate’s financial matters. If there is no will, a probate court may appoint an administrator to manage the estate and its tax obligations.

The personal representative’s duties include identifying all assets and liabilities, managing the deceased’s financial affairs, and ensuring all necessary tax returns are filed and any taxes owed are paid. They are also responsible for claiming any tax refunds due. A surviving spouse may choose to file a joint return for the year of death. If another person is named as the personal representative, the surviving spouse might still file jointly but would need the representative’s consent.

For estates that generate income after the individual’s passing, a separate taxpayer identification number (TIN), also known as an Employer Identification Number (EIN), may be required. This is relevant if the estate’s income exceeds certain thresholds, necessitating the filing of an estate income tax return.

Identifying Necessary Tax Forms and Deadlines

The primary return is the final income tax return, typically filed using Form 1040 or Form 1040-SR. This return reports all income earned by the deceased from the beginning of the tax year up to their date of death. The due date for this final return is generally April 15 of the year following the individual’s death. On a paper return, “Deceased,” the taxpayer’s name, and the date of death should be written at the top.

An estate income tax return, Form 1041, may be necessary. This form is required if the estate generates gross income of $600 or more during the year, or if it has a nonresident alien beneficiary. Form 1041 reports income earned by the estate’s assets after the date of death, such as rental income or investment earnings. The filing deadline for Form 1041 is typically the 15th day of the fourth month after the estate’s tax year ends, which is April 15 for calendar-year estates.

A Federal Estate Tax Return, Form 706, is required only for very large estates. For individuals passing away in 2024, this return is generally required if the gross estate, combined with any adjusted taxable gifts, exceeds $13.61 million. The due date for Form 706 is nine months after the date of death, though a six-month extension can be requested. Form 706 is also used to elect “portability,” which allows a surviving spouse to use any unused portion of the deceased spouse’s federal estate tax exemption.

It is also important to consider state-level tax obligations. Many states have their own income tax requirements for deceased individuals and estates. Some states may also impose state estate taxes, which can have significantly lower exemption thresholds than the federal estate tax.

Collecting Required Information and Documents

To prepare the necessary tax returns for a deceased individual and their estate, a thorough collection of specific information and documents is essential. This includes accurate personal details such as the deceased’s Social Security number, date of birth, date of death, and their last address.

Comprehensive records of the deceased’s income up to the date of death are crucial. This includes W-2 forms for wages, 1099 forms for interest, dividends, pensions, and other types of income. For individuals with business interests, K-1 forms and detailed business income records are necessary. Any income generated by the estate after the date of death, such as rental income or investment gains, must also be documented for the estate’s income tax return.

Documentation supporting deductions and credits should also be gathered. This can include receipts for medical expenses, records of charitable contributions, mortgage interest statements, and property tax payments made by the deceased.

For estates that may be subject to federal estate tax, detailed asset valuations are required. This involves determining the fair market value of all assets as of the date of death, including real estate, bank accounts, investment portfolios, life insurance policies, and retirement accounts. Information regarding any outstanding debts, such as loans, credit card balances, or medical bills, is also important for estate tax purposes.

The deceased’s tax returns from prior years can provide valuable historical financial information. A certified copy of the death certificate is a universally required document for various processes, including tax filings and claiming refunds.

Submitting the Returns

For paper-filed federal income tax returns (Form 1040 or 1040-SR), the personal representative should write “Deceased,” the deceased’s name, and date of death at the top of the form. The return should be signed by the personal representative. If a surviving spouse files a joint return, they should sign and indicate “filing as surviving spouse” in the signature area.

E-filing may be an option for some deceased taxpayer returns, though specific software requirements and limitations apply. If e-filing, the tax software typically guides the user on how to indicate the taxpayer’s deceased status. For tax payments, funds should generally come from the deceased’s estate. Payment options include mailing a check or utilizing electronic payment methods offered by the IRS.

If a refund is due and not part of a joint return filed by a surviving spouse or a court-appointed personal representative, Form 1310, “Statement of Person Claiming Refund Due a Deceased Taxpayer,” must be filed. This form notifies the IRS that the taxpayer has passed away and directs the refund to the appropriate claimant. Form 1310 generally cannot be e-filed and must be mailed, often attached to the final Form 1040. It is advisable to request a paper check for refunds rather than direct deposit.