Who Is Responsible for Filing?
The executor or personal representative is responsible for filing all tax returns on behalf of the deceased and the estate. If a surviving spouse is filing jointly, they can sign the return themselves.
If no executor has been formally appointed by the court yet, whoever is managing the deceased's financial affairs can file. Write "DECEASED," the person's name, and the date of death across the top of the return.
The Two Tax Returns You May Need to File
Most executors need to deal with two separate tax filings. They cover different time periods and use different forms.
1. Final Individual Return (Form 1040)
This is the deceased person's last personal income tax return. It covers income earned from January 1 through the date of death for the year they passed away.
What it includes:
- Wages, salary, and tips earned before death
- Interest and dividends received or accrued before death
- Retirement distributions received before death
- Social Security benefits received before death
- Any other income the person earned while alive
How to file it:
- Use the standard Form 1040. There is no special "deceased" version.
- Write "DECEASED" and the date of death at the top of the return next to the person's name.
- If you are a surviving spouse filing jointly, sign your name and write "Filing as surviving spouse" next to it.
- If you are the executor, sign the return and include your title ("Executor," "Personal Representative," or "Administrator").
- Attach Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) if a refund is due and you are not a surviving spouse filing jointly.
Deadline: April 15 of the year after death. Extensions are available by filing Form 4868.
2. Estate Income Tax Return (Form 1041)
If the estate earns income after the date of death, it becomes its own taxpaying entity. You must file Form 1041 if the estate generates more than $600 in gross income.
What counts as estate income:
- Interest earned on bank accounts after the date of death
- Dividends paid after the date of death
- Rental income from estate-owned property
- Capital gains from selling estate assets (stocks, real estate, etc.)
- Business income if the deceased owned a business that continues operating
What you need first:
- An EIN (Employer Identification Number) for the estate -- you cannot use the deceased's Social Security number for estate income. Apply online at IRS.gov for immediate processing.
- An estate bank account where income is deposited and expenses are paid.
Deadline: Form 1041 is due on the 15th day of the 4th month after the estate's tax year ends. If you use a calendar year, that means April 15. However, estates can elect a fiscal year ending on the last day of any month within 12 months of the date of death, which can give you more time.
Step-by-Step Process
Step 1: Gather Tax Documents
Before you can file anything, you need the deceased's financial records. If you have not already done this, our guide on finding tax documents for a deceased person walks through the process in detail.
Key documents to collect:
- Prior year tax returns (for reference on income sources and deductions)
- W-2s and 1099s for the year of death
- Social Security number
- Bank and brokerage statements
- Mortgage interest statements (Form 1098)
- Property tax records
- Records of charitable contributions
- Medical expense receipts (if itemizing)
IRS tip: If you cannot locate prior returns, file Form 4506-T (Request for Transcript of Tax Return) to get copies from the IRS. You will need to include a copy of your appointment as executor or a court certificate.
Step 2: Determine Filing Status
The filing status depends on the deceased's marital status and the date of death:
- Surviving spouse filing jointly: If the person was married at the time of death, the surviving spouse can file a joint return for that year. This usually results in a lower tax liability.
- Single or head of household: If the deceased was unmarried, the executor files using the status that would have applied if the person were alive.
- Married filing separately: The surviving spouse can choose this instead of filing jointly, though it rarely makes financial sense.
For the two years following the year of death, a surviving spouse with a dependent child may qualify for the "Qualifying Surviving Spouse" filing status, which preserves the married filing jointly tax brackets.
Step 3: Report Income Through the Date of Death
On the final Form 1040, report only income the deceased earned or received through the date of death. Income received after that date belongs to the estate (Form 1041) or to the beneficiary who inherited the income source.
Some specific situations:
- Wages: The employer's W-2 will show total wages paid. If any wages were paid after death, those are reported on the estate return, not the final 1040.
- Interest and dividends: Report amounts accrued through the date of death on the 1040. Amounts accrued after death go on the 1041.
- Retirement accounts: Distributions the deceased received before death go on the 1040. Required minimum distributions not yet taken for the year of death must still be taken by the beneficiary.
- Social Security: Benefits received in the month of death and after must be returned to the Social Security Administration. Report only benefits properly belonging to the deceased.
Step 4: Claim Deductions and Credits
The deceased is entitled to the same deductions and credits as any other taxpayer, prorated for the portion of the year they were alive:
- Standard deduction: The full standard deduction amount applies even if the person died on January 2.
- Medical expenses: Medical bills paid by the estate within one year of death can be deducted on the final return. This is an important planning opportunity -- the executor can choose to deduct medical expenses on the final 1040 or on the estate tax return, whichever produces the bigger tax benefit.
- Charitable contributions: Donations made before death are deductible on the final return.
- State and local taxes: Property taxes, state income tax, and sales tax paid before death are deductible (subject to the $10,000 SALT cap).
Step 5: File and Pay Any Tax Owed
File the return by the applicable deadline. If tax is owed, pay it from estate funds -- not from your personal accounts. As executor, you are not personally responsible for the deceased's tax liability (unless you distribute estate assets before paying taxes, in which case you may be liable up to the amount distributed).
If the return shows a refund, the IRS will issue it to the estate. You may need to attach Form 1310 to claim the refund.
Estate Tax vs. Income Tax
These are different things, and it is important not to confuse them:
- Income tax (Form 1040 and Form 1041) applies to almost every estate. It taxes the income the deceased earned and any income the estate earns during administration.
- Federal estate tax (Form 706) applies only to estates exceeding the federal exemption -- $13.99 million for individuals dying in 2026. The vast majority of estates do not owe federal estate tax.
Some states also impose a state-level estate tax or inheritance tax with lower exemption thresholds. Check your state's rules.
Common Mistakes to Avoid
- Missing the filing deadline. The final return is due April 15 like any other return. The IRS does not automatically extend deadlines because someone has died. File Form 4868 if you need more time.
- Using the deceased's SSN for estate income. Income earned after death must be reported under the estate's EIN on Form 1041, not on the final 1040.
- Forgetting about state tax returns. If the deceased lived in a state with income tax, you likely need to file a final state return as well.
- Not filing at all. Some executors assume that if the deceased had low income, no return is needed. But if tax was withheld from wages or other payments, the estate may be owed a refund. Filing is also necessary to start the statute of limitations on IRS audits.
- Paying taxes from personal funds. All tax payments should come from the estate. If the estate does not have liquid funds yet, request an extension and pay when estate accounts are accessible.
- Overlooking income in respect of a decedent (IRD). Some income items -- like unpaid wages, IRA distributions, or deferred compensation -- are taxable to whoever receives them (the estate or beneficiary), even though the deceased earned them. These are commonly missed.
When to Get Professional Help
Tax filing for a deceased person is straightforward when the situation is simple -- a W-2, some bank interest, standard deduction. But consider hiring a CPA or tax professional if:
- The deceased had business income, rental properties, or complex investments
- The estate may owe federal or state estate tax
- There are assets in multiple states
- The estate earns significant income during administration
- You are unsure how to handle income in respect of a decedent
The cost of professional tax preparation for a final return typically ranges from $200 to $600, and for a Form 1041 from $400 to $1,500 depending on complexity. These fees are deductible as estate administration expenses.
How SwiftProbate Can Help
Filing taxes is one of many responsibilities on an executor's plate. SwiftProbate generates a personalized probate checklist for your estate that includes tax filing deadlines, the specific forms you need, and where this step fits among your other executor responsibilities -- all based on your state's requirements and the assets in the estate.