Filing taxes for a deceased person: What family members need to know 

Does a final tax return even need to be filed? 

Filing requirements don’t change when someone passes away. So, if your loved one would have been required to file if they were alive, then you, as their surviving spouse or appointed representative, will be required to file their final tax return.

On the other hand, if the deceased’s income was below the filing threshold for their age and filing status, you will not be required to file a final tax return. But, if the IRS owned them a tax refund, it may still be worth filing.

Who is responsible for filing the final return?

The responsibility for filing the deceased’s final tax return usually falls to one of three people.

• Surviving spouse: If the deceased was married, the surviving spouse is usually responsible for filing on their behalf. Take note that you can still file jointly in the year your spouse passed away.
• Executor or personal representative: If the deceased has a will, the person who is named to handle their estate is usually responsible for filing on their behalf.
• A court-appointed administrator: If the deceased does not have a will and was not married, the probate court will appoint someone to manage the estate and file on their behalf.

What tax return does a deceased person file? 

When filing on behalf of a deceased person, you will file with Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors if they were 65 or older, just as they would if they were alive. There is no special tax return for deceased taxpayers.

Keep in mind that if the deceased had a taxable estate, you’ll additionally need to file Form 1041, U.S. Income Tax Return for Estates and Trusts, and possibly Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

What income should be reported up to the date of death?

The IRS requires you to report all the income the deceased received between January 1 and the day they die. In other words, you must report all the income they received while they were alive. This includes:

• Wages or salary paid before the date of death
• Interest, dividends, and investment income received while they were alive
• Retirement distributions or Social Security payments they collected
• Self-employment income earned before they passed

This does not include:

• Income they received after they passed away, even if it's related to something they did while alive, like a final paycheck issued after their death
• Interest or dividends that post to an account after death

Income the deceased received after they died doesn’t just disappear. It typically becomes "income in respect of a decedent," and should be reported either on the estate’s tax return or by whoever inherits it.

Do you need to tell the IRS the person died? 

You don’t need to tell the IRS formally that a loved one has died. Generally, the Social Security Administration informs the IRS and other federal agencies once a death has been reported. However, you should write “deceased” at the top of their final tax return.

Take note that if the IRS attempts to contact the deceased person after their death, you should clarify their date of death. Never ignore IRS communications.

What documents family members should gather 

Before sitting down to file for the deceased, it helps to gather all the documents you’ll need, including:

• The death certificate. Some documentation may require proof of death depending on the situation.
• Prior-year tax returns give you a sense of income sources and deductions the deceased typically claimed.
• W-2s and 1099s covering income the deceased earned up to the date of death.
• Records of any final medical expenses, which may be deductible on the final return.
• Documentation of any debts or estate assets, especially if an estate return will also need to be filed.
• Proof of your authority to act on the person's behalf, such as court appointment paperwork or a copy of the will naming you executor.
• If you're not the surviving spouse, you'll also want to have Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, on hand, in case the IRS owes the deceased a tax refund.

How to mark a return as final: "Deceased" notation and signatures 

Write "Deceased" at the top of Form 1040, above the taxpayer information, along with the deceased’s name and date of death.

Signatures work a bit differently depending on who is filing on behalf of the deceased. If you are a surviving spouse filing a joint return, you’ll sign your own name and write "filing as surviving spouse" in the space for the deceased person's signature. If you are filing as an executor or administrator, you’ll sign your own name and add your title, like "executor" or "personal representative."

If a refund is due and you are not the surviving spouse, you’ll typically need to attach Form 1310 for the IRS to release the refund.

It seems like a small detail, but skipping the "Deceased" notation or signing incorrectly is one of the most common reasons final returns get flagged or delayed.

What filing status should you use?

The appropriate filing status for a final return depends mostly on marital status and the timing of the death.

If you are the deceased’s surviving spouse, you can usually file a joint return for that year, reporting both your incomes. This is true even if your spouse passed away during the year, as long as you don’t remarry before the end of the year.

If you remarry before the end of the year, you can file jointly with your new spouse instead, and the filing status for the deceased’s final return would be married filing separately.

If the deceased wasn't married, their final return typically uses single or head of household status, depending on their situation, just like it would have if they were still alive.

In some cases, a surviving spouse with dependents may also qualify for qualifying surviving spouse status in the two years following the death. This can offer a more favorable tax rate than filing single.

When you need IRS Form 1310 

You need Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, if you are a family member or have another relationship to the deceased besides surviving spouse or court appointed executor or representative, and they were owed a refund. This is the most common scenario for adult children handling a parent's final return without a formal court appointment.

You do not need Form 1310 if you are the deceased’s surviving spouse, because you are able to file jointly and get the refund issued in your name. Nor do you need Form 1310 if you are a court-appointed executor or administrator.

Filing a final return can add stress to an already-stressful situation. The good news? With your local Jackson Hewitt Tax Pro, you can rest assured that it’s handled. We’re open all year and ready to help. Book tax services near you today, or walk in anytime.