How to File Taxes for Someone Who Died

Filing taxes after an individual’s death involves navigating various tax obligations. This article guides those managing a deceased person’s affairs through the necessary steps to fulfill these tax responsibilities.

Responsibilities of the Personal Representative

The personal representative manages a deceased person’s financial affairs. This role is typically established through a will, naming an executor, or by court appointment as an administrator if no will exists. The personal representative identifies all income and expenses, determines which tax returns to file, and ensures taxes are paid from the estate’s assets.

A primary duty involves obtaining an Employer Identification Number (EIN) for the estate. This EIN acts as the estate’s unique tax identifier, similar to a Social Security Number for an individual. It is necessary for managing estate finances, such as opening a bank account in the estate’s name and filing estate income tax returns. An EIN can be obtained online through the IRS website using Form SS-4, or by mail or fax.

Understanding Tax Returns for the Deceased

Several types of federal income tax returns may be necessary following a person’s death, each covering distinct periods and types of income. The most immediate is the final income tax return, Form 1040 or Form 1040-SR, which reports income earned by the individual from the beginning of the tax year up to the date of their death. This return includes all income the decedent received, such as wages, interest, and dividends, and claims any deductions and credits they were entitled to. The filing status for this final return can be single, or if the decedent was married and the surviving spouse has not remarried, a joint return can be filed for that year. If a refund is due, Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, may need to be filed, unless the personal representative is a surviving spouse filing jointly or a court-appointed representative.

Beyond the final individual return, the estate itself may become a taxable entity requiring its own income tax return, Form 1041, U.S. Income Tax Return for Estates and Trusts. This form reports income generated by the estate after the date of death, such as interest from estate bank accounts or rental income from property held by the estate. Form 1041 is generally required if the estate’s gross income is $600 or more, or if any beneficiary is a nonresident alien. The estate’s tax year typically begins on the date of death, and the personal representative can elect either a calendar year or a fiscal year for reporting purposes.

A separate consideration is the federal estate tax return, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. This return is concerned with the total value of the decedent’s gross estate, including all assets owned at the time of death, rather than just income. Form 706 is required to be filed if the gross estate’s value, combined with any adjusted taxable gifts, exceeds the federal estate tax exemption amount for the year of death, which was $13.61 million for decedents dying in 2024. Even if no estate tax is ultimately due, filing Form 706 may still be beneficial, particularly for married individuals, to elect “portability” of any unused exemption amount to the surviving spouse.

The concept of Income in Respect of a Decedent (IRD) refers to income that the decedent had earned or had a right to receive during their lifetime but had not yet received before death. Examples include uncollected salaries, bonuses, interest, dividends, and distributions from retirement accounts. This income is typically taxed to the beneficiary or estate that receives it, rather than being reported on the decedent’s final income tax return. While IRD is included in the decedent’s gross estate for federal estate tax purposes, potentially leading to a “double tax,” the recipient may be able to claim an income tax deduction for the estate tax paid on the IRD.

Conversely, Deductions in Respect of a Decedent (DRD) relate to expenses that the decedent incurred before death but were not paid until after their passing. These include certain business expenses, interest, taxes, and expenses for the production of income. Unlike regular deductions which might be claimed on the final Form 1040 if paid before death, DRD items are generally deductible by the estate or the beneficiary who pays them. Understanding these specific income and deduction classifications aids accurate tax reporting.

Gathering Necessary Information

Before preparing any tax returns for a deceased individual or their estate, the personal representative must gather specific financial information and documents. A certified copy of the death certificate confirms the date of death, which is used for determining the tax period for the final income tax return. The deceased person’s Social Security number is essential for their final individual tax return, while the estate’s Employer Identification Number (EIN) is required for any estate income tax filings.

Comprehensive records of the decedent’s income for the year of death are necessary. This includes W-2 forms for wages, 1099 forms for interest, dividends, and other miscellaneous income, and K-1 forms for partnership or S-corporation income. It is important to distinguish between income earned before death, which is reported on the final Form 1040, and income generated by the estate after death, which is reported on Form 1041. Records supporting any deductions and credits the decedent was eligible for, such as medical expenses, charitable contributions, or itemized deductions, must also be collected.

For the federal estate tax return (Form 706), detailed valuation statements for all assets owned by the decedent at the time of death are required. This encompasses real estate appraisals, brokerage statements for stocks and bonds, bank account balances, and valuations of any business interests or other property. Documentation of liabilities, such as mortgages, loans, and other debts, is important for determining the net value of the estate. Additionally, any prior unfiled tax returns for the decedent should be located.

Completing and Submitting Returns

After gathering and organizing information, the next step is completing and submitting the required tax returns. The final Form 1040 for the deceased taxpayer is generally due by April 15 of the year following the individual’s death. If the estate uses a calendar tax year, Form 1041 for estate income is also due by April 15 of the following year; for fiscal year estates, it is due on the 15th day of the fourth month after the close of the estate’s tax year. Form 706 must be filed within nine months after the date of the decedent’s death.

Extensions to file these returns are available if more time is needed. An automatic six-month extension for Form 1040 can be requested using Form 4868, while Form 7004 provides an automatic 5.5-month extension for Form 1041. For Form 706, an automatic six-month extension to file is available by submitting Form 4768. These extensions provide additional time to file the return, not to pay any taxes owed, so estimated payments should still be made by the original deadline to avoid penalties and interest.

Tax forms can be obtained directly from the IRS website or by mail. Completed returns can be submitted electronically, if supported by the tax software, or by mail to the appropriate IRS service center. When paper-filing the final Form 1040, clearly write “Deceased,” the decedent’s name, and the date of death across the top of the return. Any tax payments due can be made through various methods, including IRS Direct Pay from a bank account, by credit or debit card, or by mailing a check or money order with Form 1040-V.

After submission, the personal representative should retain copies of all filed returns and supporting documentation. Should the IRS have questions or require further information, they will send correspondence to the address provided on the return.