When someone dies, two types of tax returns may be needed: a final personal income tax return (Form 1040) for income earned through the date of death, and an estate income tax return (Form 1041) for income earned by the estate after death. The final 1040 is due April 15 of the following year.
11 steps across 2 sections
1. Steps Process
- File the final Form 1040 — Report income from January 1 through the date of death. The surviving spouse (if applicable) may file jointly for that year.
- Obtain an EIN for the estate — If the estate earns income (interest, dividends, rent, asset sales), apply for an Employer Identification Number at irs.gov/ein.
- File Form 1041 — Report estate income earned after the date of death. This includes interest, dividends, capital gains from asset sales, and rental income.
- Issue K-1s to beneficiaries — If the estate distributes income to beneficiaries, provide Schedule K-1 forms for their personal returns.
- Pay estate taxes (if applicable) — Federal estate tax applies to estates exceeding $13.61 million (2024). Some states have lower thresholds.
2. Key Details
- Final 1040: Income through date of death; surviving spouse may file jointly
- Form 1041: Estate income after date of death
- Estate tax threshold: $13.61 million (2024 federal); some states lower
- Final 1040 due: April 15 of following year (extensions available)
- Form 1041 due: 15th day of 4th month after estate tax year ends
- Medical expenses paid within 1 year of death can be deducted on the final 1040
Pro Tips
- Hire a CPA or tax attorney experienced in estate taxes
- File for extensions if needed rather than rushing
- Check for estimated tax payments the deceased already made
- Deduct unreimbursed medical expenses on the final return