Filing a deceased person’s tax return
Published on January 10, 2025
by Sparsh Ganeriwala
Sparsh Ganeriwala, an IRS Enrolled Agent with over 12 years of expat tax experience, specializes in filing US taxes for Americans living in Canada, US/Foreign Trusts, and GILTI Tax.
Table of Contents
Who is responsible for handling taxes after someone passes away?
When someone passes away, the person responsible is usually a court-appointed representative, executor, or someone officially named to handle the estate. If there isn’t an executor, a surviving spouse or a family member may take on this task.
The person responsible for filing must report all income the deceased earned before their death and make sure any taxes owed are paid. It’s a legal responsibility to handle these tax matters, and it ensures the estate is properly managed without penalties from the IRS.
What forms are required when filing for a deceased person?
You’ll need a few specific forms to file taxes for someone who has passed away:
- Form 1040 (US Individual Income Tax Return): This is the regular tax return, but it reports income earned up until the date of death.
- Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer): If the deceased is owed a refund, the person claiming it must complete this form.
Sometimes, an estate tax return is also needed:
- Form 706 (United States Estate Tax Return): You only need this if the estate is very large—more than US$13,990,000 in 2025.
How is income reported after someone passes away?
When someone passes away, their income is split into two parts:
- Income earned before their death: This includes paychecks, Social Security benefits, or retirement payments they received while alive. This information is reported on their final tax return, usually filed using Form 1040.
- Income earned after their death: Any money earned by their property or investments (like rent from a house or interest from a bank account) is treated separately. This is reported on an Estate Income Tax Return (Form 1041) by the person handling the estate.
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Are there tax benefits or exemptions for filing on behalf of a deceased person?
Yes, there are certain benefits:
- Deductions and Credits: If the deceased had tax breaks like medical deductions or child tax credits, these can still be claimed on their final tax return.
- Filing Jointly: If the deceased was married, the surviving spouse can file jointly for the year of their passing. Filing jointly can mean a bigger refund or paying less tax compared to filing separately.
What happens if taxes are owed or a refund is due?
- If taxes are owed: The person managing the estate (executor or personal representative) must use estate funds to pay any unpaid taxes before the remaining money or assets are given to beneficiaries.
- If a refund is due: The IRS requires the person claiming the refund to submit Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer). This might be a surviving spouse or the executor.
When are taxes for a deceased person due?
Taxes for someone who has passed away are due by April 15 of the year after their death. If the person died before the tax deadline for the previous year, taxes for that year are also due.
What filing status should you use?
The filing status for the final tax return depends on the person’s situation before they passed away.
- Married Filing Jointly: If the person was married, their spouse can file a joint return for the year of death. This status often results in lower taxes and a larger standard deduction.
- Qualifying Surviving Spouse: If the spouse has a dependent child and doesn’t remarry, they can use this status for two years after the year of death. It keeps the same benefits as filing jointly.
- Married Filing Separately: If filing separately makes more sense, the surviving spouse can choose this option instead.
- Head of Household: If the deceased was unmarried but had dependents, this status might apply, offering a higher deduction than filing as single.
- Single: If the person was unmarried with no dependents, their return is filed as single.
In general, here are the forms you’ll need:
- Form 1040 or 1040-SR for their final tax return.
- Form 1310 to claim any refund owed.
- Form 4868 if you need more time to file.
Can a deceased person’s medical expenses be deducted on their final return?
Yes, medical bills that were paid before the person passed away can often be written off on their final tax return. If the bills were paid after their death, they might need to be included on the estate tax return instead. It’s a good idea to check the IRS rules or talk to a tax professional for guidance.
Do I need a death certificate to file their tax return?
You usually don’t need a death certificate to file a tax return. However, you might need it if you’re claiming a refund or if the IRS asks for extra proof. If you’re managing the taxes for someone who has passed away, keep the death certificate handy just in case.
What happens if the deceased person owned a business?
If the person who passed away owned a business, the executor (the person managing the estate) will need to handle the business taxes. This includes filing any regular business tax returns, paying outstanding taxes, and possibly filing an Estate Tax Return (Form 706) if the estate is large.
The executor might also need to get a special tax ID called an Employer Identification Number (EIN) to manage the estate’s financial matters related to the business.
Does the IRS need to be notified of a person’s death directly?
You don’t need to tell the IRS about the death yourself. The Social Security Administration usually takes care of notifying the IRS. When filing the final tax return, the executor or representative includes the necessary forms, like Form 1310 if there’s a refund involved. This serves as the official notice to the IRS.
Other things to keep in mind
- Executor’s Role: If an executor is named, they’re in charge of handling all tax matters.
- Standard Deduction: The deduction depends on the filing status you select.
- Deadlines: The final tax return is due on the usual tax deadline, April 15 of the following year.
- Extensions: If more time is needed, the person filing the return can request an extension by submitting Form 4868 before the deadline. This provides an extra six months to file.
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