Filing a Final Tax Return: What You Need to Know

Losing a loved one comes with many emotional and logistical challenges. Amid the grieving process, taxes are often the last thing on anyone’s mind—but unfortunately, they still need to be addressed.

If the deceased earned taxable income in the year they passed away, a final federal income tax return (Form 1040) must be filed. Additionally, if their estate holds significant assets or generates income, other tax filings, such as Form 1041 or Form 706, may be required.

Important Note: This information is for general guidance only and should not be considered tax or legal advice. Consult a tax professional for personalized assistance.

Income Taxes: Filing the Final 1040

The IRS requires the final tax return to be filed by April 15 of the year following the individual’s death. If the deceased was married, the surviving spouse may choose to file a joint tax return for that final year.

Key Filing Requirements:

• When filing a paper return, write “Deceased,” the individual’s name, and date of death at the top of the Form 1040.
• A personal representative or surviving spouse must sign the return according to IRS guidelines.
• If a refund is due, Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) may be required.

Estate Taxes: Understanding Additional Tax Obligations

Larger estates may need to file Form 706 (U.S. Estate Tax Return) within nine months of the date of death (a six-month extension is available). However, only estates valued over $13.61 million (for 2024) are subject to federal estate taxes.

Additionally, if an estate earns more than $600 in gross annual income within 12 months of the individual’s passing, Form 1041 (U.S. Income Tax Return for Estates and Trusts) must be filed, typically by April 15 of the following year. Estates where all assets are exempt from probate may not need to file.

Other Important Considerations

• Some medical expenses paid before death may be deductible on the deceased’s final tax return.
• The appointed personal representative (executor or administrator) must sign all necessary tax filings.

You Don’t Have to Navigate This Alone

The passing of a loved one is an incredibly difficult time, and managing financial responsibilities can feel overwhelming. If you need support in handling these financial issues, we’re here to help you through the process.