Preparation Tips for Survivors, Executors, and Administrators
If you’ve been chosen as a personal representative or if you are in charge of a deceased person’s property, then you may be required to file a final federal tax return for them.
The deceased person’s final tax return is generally completed in the same manner as when they were living, except that the tax period ends on the date of death. And the same method of reporting—cash or accrual—can be used. If you’re unsure of which method to use, we recommend that you consult with an accountant.
Similar to your own return, you’ll want to collect all of the income tax statements issued to the deceased person for that year, which may include:
Salary and hourly income
Interest and dividend income
Business partnership income
S corporation income
Self-employment income
Community income such as a health savings account or medical savings account
Education savings account
Accelerated death benefits
And generally, deductions can also be treated the same as how the deceased person reported when they were living—standard or itemized.
In addition to deductions, the deceased person may be eligible for tax credits that applied before death. These may include:
Earned income credit
Credit for the elderly or the disabled
Child tax credit
Adoption credit
General business tax credit
The deceased person may also qualify for tax forgiveness if they were a member of the armed forces, victims of terrorism, or astronaut.
A few more tips:
Write “DECEASED,” the deceased person’s name, and the date of death across the top of the tax return.
If you are a personal representative, you should sign the return.
If you are the personal representative of a deceased person who has a surviving spouse, and the tax return is filed jointly, you should sign the return along with the surviving spouse.
REMEMBER: If an individual passes away after the close of the tax year but before the return for that year is filed, you may have to file taxes for the deceased person for two years. For example, Ms. Townsend passes away on March 10, 2024 and had not filed her 2023 tax return. The personal representative may need to file Ms. Townsend’s 2023 tax return in 2024 and complete Ms. Townsend’s final return covering January 1, 2024–March 10, 2024 in 2025.
For full details on filing a final federal income tax return as a survivor, executor, or administrator, see IRS Publication 559 in its entirety.
Do you need a probate attorney?
Provurb is not a law firm and we do not provide legal or tax advice. Information contained in this blog is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal or tax problem, and it should not be substituted for legal or tax professional advice. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult with a probate attorney or financial professional.