How to File the Final Tax Return

The deceased person's final federal income tax return (Form 1040) covers January 1 through the date of death for the year they died. The filing deadline is the same as for living taxpayers — April 15 of the following year. Write "DECEASED," the deceased person's name, and the date of death across the top of the return. If you are the surviving spouse, you may file a joint return for the year of death, which is typically the most tax-advantageous option.

Gather all income documents: W-2s, 1099s for interest, dividends, retirement distributions, Social Security benefits, and any other income received through the date of death. Income received after the date of death belongs to the estate and is reported on a separate estate income tax return (Form 1041) if the estate earns more than $600. If a tax refund is due and you are not the surviving spouse filing jointly, you will need to file Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) to receive the refund.

In addition to the final 1040, the estate itself may need to file IRS Form 1041 (U.S. Income Tax Return for Estates and Trusts) if the estate earns income after the date of death — for example, interest on bank accounts, rental income, or investment gains. If the estate's gross assets exceed $12.92 million (2023 federal threshold, indexed for inflation), a federal estate tax return (Form 706) is also required, due 9 months after the date of death with a 6-month extension available. Most estates fall well below this threshold. State estate or inheritance tax thresholds are often lower — check your state's requirements. Given the complexity, hiring a CPA or enrolled agent experienced with decedent returns is strongly recommended. Fees typically range from $300 to $1,500 depending on complexity.