Do You Have to File a Dead Person’s Taxes?

Understanding tax obligations after a person’s death is a crucial process. The responsibility for a deceased individual’s final tax matters transfers to another party to ensure all financial affairs are concluded. Navigating these requirements involves identifying who is responsible, understanding what income and deductions to report, adhering to specific deadlines, and correctly completing and submitting the necessary forms.

Determining Filing Responsibility

The responsibility for preparing and filing the final tax return for a deceased individual falls to a designated representative. This individual is referred to as the “executor,” “personal representative,” or “administrator” of the estate. Their role is established through a will, where they are named, or appointed by a court if no will exists or if the named executor cannot serve.

This representative manages the deceased’s financial affairs, including all tax duties. If a formal executor or administrator has not been appointed, a surviving spouse or another close family member in charge of the deceased’s property may take on this responsibility. This duty to file the final tax return is distinct from inheriting assets, as it is a legal requirement to settle the deceased’s outstanding financial obligations.

Income and Deductions to Report

The final tax return for a deceased person covers income earned and deductions incurred up to the date of their death. The tax year for the individual effectively ends on their date of passing, not at the calendar year-end. Income received by the deceased during that period must be reported, such as wages, interest, dividends, capital gains, and retirement distributions received before death.

Eligible deductions and credits incurred up to the date of death can be claimed on this final return. These include medical expenses paid, state and local taxes, or charitable contributions made by the deceased. Income earned after the date of death, or income the deceased was entitled to but had not yet received before passing, is categorized as “income in respect of a decedent” (IRD). IRD is not reported on the deceased’s final individual income tax return but is taxable to the estate or the beneficiary who receives it. For example, if a final salary check is paid to a beneficiary after death, that beneficiary includes it in their income.

Filing Deadlines and Requirements

The standard due date for filing the deceased’s final individual income tax return, Form 1040 or Form 1040-SR, is April 15 of the year following the individual’s death. For example, if a person died in October 2024, their final tax return would be due by April 15, 2025. If additional time is needed, an automatic extension can be requested using Form 4868, which extends the filing deadline until October 15. An extension to file is not an extension to pay any taxes owed.

A final tax return is required if the deceased’s gross income met the filing threshold for their filing status and age at the time of death. These income thresholds are adjusted annually by the IRS. Even if the income threshold is not met, filing a return may still be beneficial, especially if taxes were withheld from their income or if they are eligible for a refund. For instance, if a deceased person had income below the filing requirement but had taxes withheld from their paycheck, a return must be filed to claim that refund.

Completing and Submitting the Return

The form used for a deceased person’s final federal income tax return is Form 1040 or Form 1040-SR. When preparing a paper return, write “DECEASED,” the deceased taxpayer’s name, and the date of death across the top. For electronic filing, tax software will guide you on how to indicate the deceased status and date of death.

The return must be signed by the appropriate party. A court-appointed personal representative, such as an executor or administrator, must sign the return. If a surviving spouse files a joint return, they should sign and write “Filing as surviving spouse” in the signature area. If no court-appointed representative exists and there is no surviving spouse, the person in charge of the deceased’s property should sign the return as “personal representative.”

A court-appointed representative should include a copy of the court document showing their appointment, such as Letters Testamentary or Letters of Administration. To claim a refund for an unmarried deceased taxpayer, or if someone other than a surviving spouse or court-appointed representative is claiming it, Form 1310 must be completed and attached to the return. The completed return can be mailed to the appropriate IRS service center or e-filed.

Handling Refunds or Payments

Once the final tax return is filed, any tax refund due to the deceased individual will be issued to the estate or to the designated claimant. If Form 1310 was filed, the refund check will be made payable to the person or entity indicated on that form. For surviving spouses filing a joint return, the refund is issued directly without needing Form 1310.

If a balance is due on the deceased’s final tax return, the payment should be made from the deceased’s estate. Taxes must be paid from the estate before assets are distributed to beneficiaries. Payments can be made through various methods, including electronic funds withdrawal or by mailing a check, ensuring the payment is correctly attributed to the deceased taxpayer’s Social Security number. Failure to file or pay taxes on time can result in interest and penalties being assessed against the estate. The IRS may also correspond with the personal representative or surviving spouse regarding the filed return or any outstanding matters.