Death and Taxes: How to File for a Deceased Person

When someone dies, the tax obligations do not die with them. A final income tax return must be filed for the year of death, and the estate may owe estate taxes, income taxes on estate earnings, or both. The executor or personal representative is responsible for handling these filings, and the process involves multiple forms, strict deadlines, and potential liability.

Data Notice: Filing procedures and form requirements in “Death and Taxes: Filing for a Deceased Person” reflect projected 2026 IRS rules. Deadlines may shift for weekends, holidays, or disaster declarations. Check IRS.gov for the current tax year’s official deadlines and form versions. [filing-taxes-deceased-person]

This guide covers the final return, estate tax obligations, executor responsibilities, and how beneficiaries claim refunds.

The Final Income Tax Return (Form 1040)

Every person who earned income in the year of death needs a final Form 1040 filed with the IRS. This return covers January 1 through the date of death.

Filing Details

Item	Details
Form	Form 1040 (standard individual return)
Period covered	January 1 through date of death
Who files	Surviving spouse (if filing jointly) or executor/personal representative
Due date	Normal April 15 deadline for the following year (April 15, 2027 for a 2026 death)
Filing status	Same rules as living taxpayers (see below)

Filing Status Options

Situation	Filing Status
Deceased was married, surviving spouse wants to file jointly	Married Filing Jointly (for the year of death)
Deceased was married, surviving spouse does not want joint liability	Married Filing Separately
Deceased was unmarried	Single or Head of Household
Surviving spouse with dependent child (year after death)	Qualifying Surviving Spouse (for 2 years following death)

The Qualifying Surviving Spouse status allows the surviving spouse to use MFJ tax brackets and the ~$32,200 standard deduction for two years after the year of death, provided they have a dependent child.

Income to Report

The final return includes all income received or constructively received through the date of death:

Wages, salary, and tips (through date of death)
Interest and dividends (through date of death)
Rental income
Business income (for self-employed)
Social Security benefits received before death
Capital gains from sales completed before death

Income received after the date of death (such as a final paycheck issued after death or interest accrued after death) is reported on the estate’s income tax return (Form 1041), not the final 1040.

Signing the Return

Filer	How to Sign
Surviving spouse (joint return)	Signs normally, writes “Filing as surviving spouse”
Executor or personal representative	Signs with “As personal representative of [name], deceased”
No executor appointed	The person responsible for the decedent’s property files and signs

Write “DECEASED,” the decedent’s name, and the date of death across the top of the return.

Claiming a Refund: Form 1310

If the final return results in a refund, the person claiming it must file Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) unless:

The filer is a surviving spouse filing a joint return, or
The filer is a court-appointed personal representative who has attached the court certificate

Form 1310 Requirements

Claimant	Form 1310 Required?
Surviving spouse on joint return	No
Court-appointed executor	No (attach court certificate instead)
Anyone else claiming the refund	Yes

The refund is made payable to the estate of the deceased unless a surviving spouse filed jointly.

Estate Tax: The $15 Million / $30 Million Exemption

The federal estate tax applies to the total value of a deceased person’s assets above the exemption threshold. The OBBB made the TCJA’s doubled exemption permanent and indexed it for inflation.

2026 Estate Tax Key Numbers

Feature	Amount
Individual exemption	~$15,000,000
Married couple (with portability)	~$30,000,000
Top estate tax rate	40%
Estate tax return	Form 706
Due date	9 months after date of death (6-month extension available)

For a detailed breakdown of exemptions, state-level estate taxes, and planning strategies, see our estate tax exemption guide.

Who Owes Estate Tax?

With the ~$15 million individual exemption, fewer than 0.1% of estates owe federal estate tax. However:

State estate taxes have much lower thresholds (Oregon starts at ~$1 million, Massachusetts at ~$2 million)
State inheritance taxes apply in 6 states regardless of the total estate size (based on what each heir receives)
Portability allows a surviving spouse to use the deceased spouse’s unused exemption, but only if Form 706 is timely filed

Portability Election

Even if no estate tax is owed, filing Form 706 to elect portability can preserve millions in exemption for the surviving spouse. This election is only available if Form 706 is filed within 9 months of death (plus extensions). Many families lose this benefit by assuming Form 706 is unnecessary when no tax is due.

Estate Income Tax Return (Form 1041)

If the estate earns income after the date of death — interest on bank accounts, rental income from estate property, dividends from stocks — the estate must file Form 1041 (U.S. Income Tax Return for Estates and Trusts).

Form 1041 Key Points

Feature	Details
Fiscal year	Estates can choose a fiscal year (ending any month within 12 months of death)
Tax rates	Compressed: 37% bracket starts at just ~$15,200 of taxable income
Deductions	Administrative expenses, charitable contributions, distributions to beneficiaries
Distribution deduction	Income distributed to beneficiaries passes through on Schedule K-1; beneficiaries report it on their own returns
EIN required	Yes — the estate needs its own Employer Identification Number

The compressed tax brackets for estates and trusts mean that retaining income inside the estate is extremely expensive from a tax perspective. Most estates distribute income to beneficiaries to avoid the 37% rate.

Executor Responsibilities: A Tax Checklist

Task	Deadline	Form
Obtain EIN for the estate	Before filing any estate returns	SS-4 (online or by mail)
File final individual return (1040)	April 15 of the year after death	Form 1040
File estate tax return (if required)	9 months after death	Form 706
File estate income tax return	April 15 (if calendar year) or 15th of 4th month after fiscal year end	Form 1041
Elect portability	With Form 706 (9 months after death)	Form 706
File state estate/inheritance tax returns	Varies by state	State-specific forms
Issue Schedule K-1 to beneficiaries	With Form 1041	Schedule K-1 (Form 1041)
Notify IRS of fiduciary relationship	When appointed	Form 56

Personal Liability

Executors can be held personally liable for distributing estate assets before paying outstanding taxes. File all returns and receive IRS clearance (or set aside sufficient reserves) before making final distributions.

Stepped-Up Basis for Inherited Assets

One of the most significant tax benefits for heirs is the stepped-up basis. When you inherit an asset, your cost basis is reset to the fair market value on the date of death.

Example: The deceased purchased a home for $200,000 that is worth $800,000 at death. The heir inherits it with an $800,000 basis. If the heir sells for $810,000, the taxable gain is only $10,000 — not $610,000.

This applies to:

Real estate
Stocks and mutual funds
Business interests
Collectibles and other capital assets

Community property states provide a full step-up for both halves of community property, even though only one spouse died.

Special Situations

Income in Respect of a Decedent (IRD)

Certain income items that the deceased earned but had not yet received are called “income in respect of a decedent.” These are taxable to whoever receives them:

Unpaid salary or bonuses
Traditional IRA and 401(k) distributions
Deferred compensation
Accrued interest on savings bonds

IRD does not receive a stepped-up basis. A beneficiary who inherits a traditional IRA pays income tax on every distribution.

Joint Returns with a Surviving Spouse

A surviving spouse can file a joint return for the year of death, combining both spouses’ income and deductions. This is often beneficial because it provides the full MFJ standard deduction and bracket widths for the entire year.

Estimated Tax Payments

If the deceased was making estimated tax payments, the surviving spouse or executor should continue making them to avoid underpayment penalties. Payments made under the deceased’s SSN apply to the final return.

Frequently Asked Questions

How do I get an EIN for the estate? Apply online at IRS.gov (SS-4 application) or by mail/fax. The process takes minutes online.

Does the estate have to file a return if the only asset is a house? A final 1040 is required if the deceased had filing-level income. An estate income tax return (Form 1041) is required only if the estate earns income after death. Form 706 is required only if the gross estate exceeds the exemption threshold.

What if I discover unfiled returns from prior years? The executor is responsible for filing any delinquent returns. See IRS payment plans for options if taxes are owed.

Can I deduct funeral expenses? Not on the final 1040. Funeral expenses are deductible only on the estate tax return (Form 706), if filed.

What about the deceased’s tax filing deadlines? The final 1040 follows the normal April 15 deadline. Extensions (Form 4868) are available. The estate tax return (Form 706) is due 9 months after death with a 6-month extension available.

Key Takeaways

A final Form 1040 must be filed for the year of death, covering income from January 1 through the date of death
The federal estate tax exemption is ~~$15 million per individual (~~$30 million for married couples with portability) in 2026
File Form 706 to elect portability even if no estate tax is owed — this preserves the unused exemption for the surviving spouse
Estate income earned after death is reported on Form 1041, which has compressed brackets reaching 37% at just ~$15,200
Inherited assets receive a stepped-up basis, eliminating unrealized capital gains
Executors face personal liability if they distribute assets before settling tax obligations

Next Steps

Review the estate tax exemption permanent guide for planning strategies
Understand tax brackets for estates and individuals
Explore the full tax deductions list applicable to the final return
See IRS payment plans if the estate owes taxes it cannot pay immediately

The death and taxes: filing for a deceased person information herein is general in nature and intended for educational use. It should not be treated as specific tax advice applicable to any individual taxpayer. Consult with a qualified tax advisor before making financial or tax planning decisions.