When a loved one passes away, taking care of their finances can be overwhelming. Preparing their final tax return might be something you will need to do. The IRS continues to require a tax return to be filed for the year they passed away if they had reached the income level. This is the step-by-step guide that will help you navigate it.
Who is responsible for filing a deceased person’s tax return?
The responsibility of filing a deceased person’s tax return usually falls on the personal representative. This could be:
- The executor is named in the deceased person’s will.
- An administrator appointed by the court.
- A surviving spouse, if filing jointly.
- Any other person responsible for managing the deceased person’s property.
If there is no court-appointed representative, the person in charge of the deceased person’s assets must file the return.
What forms do you need to file a final tax return?
The tax return for a deceased person is filed using the same forms they would have used if they were alive. This includes:
- Form 1040 or 1040-SR: This is the standard individual income tax return.
- Form 1310 (if needed): If you are claiming a tax refund on behalf of the deceased and are not a surviving spouse or court-appointed representative, you may need to file this form.
- Form 56 (if needed): Used to notify the IRS that you are acting as the personal representative for the deceased.
How to file a final tax return for a deceased spouse
If your spouse passed away during the year, you can file a joint return as long as you did not remarry before the end of the year. Here is what you need to do:
- Use “married filing jointly” as the filing status.
- Write “Deceased” along with your spouse’s name and date of death at the top of Form 1040 or 1040-SR.
- Sign the return as the surviving spouse.
- If there is a court-appointed representative, they must also sign the return.
- If a refund is due, there is nothing additional you need to do unless the refund check needs to be reissued to a new payee.
How to file a final tax return for an unmarried deceased person
If the deceased person was unmarried, follow these steps:
- Use their standard filing status (Single or Head of Household).
- Write “Deceased” with their name and date of death at the top of Form 1040 or 1040-SR.
- The personal representative (executor or administrator) must sign the return.
- If no personal representative has been appointed, the person managing the deceased person’s property must sign the return.
- If a refund is due, Form 1310 may be required unless the filer is a court-appointed representative.
What happens if you do not file a deceased person’s tax return?
Failing to file a required tax return can lead to serious consequences, including:
- IRS notices sent to the last known address of the deceased.
- The IRS seeking payment from the deceased person’s estate.
- Potential financial liability for the executor or heirs if they received the deceased person’s property.
If the deceased is owed a tax refund and no return is filed, the refund will not be issued to their heirs.
Additional resources to help with filing
The IRS provides an online Interactive Tax Assistant to guide you through the process of filing a final tax return for a deceased person. You may also consult a tax professional for assistance, especially if the estate is complex.
Filing a final tax return for a deceased loved one may not be easy, but following these steps will ensure that everything is handled correctly.
Continue reading:
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