Do You Have to File Taxes for a Deceased Person?

Navigating the financial responsibilities of a loved one after they pass is a challenging task. A primary duty is addressing their final tax obligations with the Internal Revenue Service. This process involves determining if a return is necessary, who is responsible for filing, and understanding requirements for the individual and their estate. This guide provides a clear path for handling these tax matters.

Determining the Filing Requirement for the Final Personal Return

The need to file a final tax return for a deceased person, or decedent, depends on their gross income, filing status, and age. The thresholds are the same as for living taxpayers. For example, a single individual under age 65 must file if their gross income is at least $14,600, with a higher threshold for those 65 or older.

For married couples filing jointly where both spouses are under 65, the threshold is $29,200, which also increases with age. You must use the specific figures applicable to the year of death. A return may be required even if the person passed away early in the year, as long as their income from wages, investments, or other sources met the minimum level.

A return should also be filed if the decedent is owed a refund, even if their income is below the filing threshold. This can happen if federal income tax was withheld from their pay or if they made estimated tax payments. Filing a return is the only way to claim this money from the IRS.

Who is Responsible for Filing

The personal representative of the decedent’s estate is responsible for filing the final tax return. This person manages the deceased’s property and settles their financial affairs. If the decedent had a will, it likely names an executor, whose authority is confirmed by a court through probate.

If there is no will, a court will appoint an administrator to manage the estate. Both executors and administrators have a fiduciary duty to handle the decedent’s financial matters, including taxes. If no representative is appointed and there is no surviving spouse, the person in charge of the decedent’s property must file the return.

A surviving spouse can file a joint return for the year of death, provided they have not remarried within that year. This allows them to combine their income and deductions with the decedent’s pre-death income. When filing a joint return, the surviving spouse assumes responsibility for the return’s accuracy and any tax liability.

Preparing and Filing the Final Tax Return

Preparing the final tax return requires gathering several documents. You will need the decedent’s Social Security number, a copy of the death certificate, and all year-end income statements. These include Form W-2 for wages and various Form 1099s for income from retirement plans, interest, and dividends. Records of potential deductions, such as medical expenses or charitable contributions made before death, are also necessary.

The final return is filed using Form 1040 or Form 1040-SR, reporting all income earned and deductions incurred up to the date of death. Across the top of the paper form, you must write “DECEASED,” followed by the decedent’s name and the date of death. The filing deadline is the same as for all individual taxpayers, typically April 15 of the year following the death.

The personal representative must sign the return. If a joint return is filed, the surviving spouse signs as the taxpayer and also for the deceased spouse, adding “filing as surviving spouse” in the signature area. For all other returns, the court-appointed executor or administrator signs their own name, followed by their title.

If a refund is due, Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, must be attached. This form identifies the person legally entitled to the refund, though a surviving spouse filing a joint return does not need it. The executor should also file Form 56, Notice Concerning Fiduciary Relationship, to ensure they receive all IRS correspondence regarding the decedent’s tax account.

The completed return package should be mailed to the IRS service center indicated in the Form 1040 instructions. While many taxpayers file electronically, you should verify that your chosen tax software supports e-filing for decedents, as specific requirements may apply.

The Estate Income Tax Return

The decedent’s final Form 1040 is separate from the tax obligations of their estate. When a person dies, a new taxable entity—the estate—is created, consisting of all assets owned at death. If these assets generate income after the date of death, the estate may need to file its own tax return.

This return is filed on Form 1041, U.S. Income Tax Return for Estates and Trusts, if the estate has a gross income of $600 or more for the tax year. For instance, rent collected or investment dividends earned after the decedent’s death is income to the estate, not the individual.

The personal representative must file Form 1041 and pay any tax due from the estate’s assets. Income earned before death is reported on the final Form 1040. In contrast, income generated by the estate’s assets after death is reported on Form 1041.