Contributed by: TriciaD, FreeTaxUSA Agent
Losing a spouse or loved one is a difficult and emotional experience which can bring financial challenges. One of these challenges is how to file a tax return for the year of death, especially if the Social Security number (SSN) of the deceased spouse gets locked by the IRS. Here are some tips and steps to help navigate this situation.
Why does the IRS lock the SSN of a deceased person?
The IRS locks the SSN of a deceased person to prevent identity theft and fraud. When the IRS receives a notice from the Social Security Administration (SSA), it updates its records and marks the name and SSN of the person as deceased. This means that no one can use the SSN to file a tax return. However, this also means that a surviving spouse cannot use the SSN to e-file a joint return with the deceased spouse.
What should I know about filing the final return?
- The surviving spouse is permitted to file a joint return if a personal representative hasn’t been appointed by the filing deadline for the year of death.
- A death certificate or other proof of death isn’t required to be attached to the final tax return.
- Under the cash method of accounting, only income received by the deceased before the date of death is included in the final individual income tax return. Income received after death may need to be reported on the Estate Income Tax Return (Form 1041).
- The surviving spouse or representative completes and files the final tax return for the deceased individual as usual, with the only difference being that they indicate the taxpayer is deceased.
- Surviving spouses don’t need to complete Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer.
- On a joint return prepared by an appointed representative, both the representative and the surviving spouse are required to sign.
- The return due date is the standard April tax date unless an extension is filed.
- If tax is due, payment should be submitted with the return or using another payment options available on the IRS website.
How do I file a joint return with a deceased spouse?
If you’re the surviving spouse and you want to file a joint return with your deceased spouse for the year of death then follow these steps:
- Prepare your joint return as usual, using the SSN of both spouses.
- If mailing, print the return and write "Deceased" across the top, along with the name and date of death of the deceased spouse.
- Mail the return to the IRS service center for your area. You can find the address on the IRS website.
If preparing a return as a representative (not a spouse), Form 1310 may need to be included with the return.
What if I don't want to file a joint return?
If you don't want to file a joint return with your deceased spouse, you have other options depending on your situation. You can file as:
- Single, if you were legally separated or divorced from your spouse before the date of death.
- Married filing separately if you want to report only your own income and deductions.
- Qualifying widow(er) with dependent child, if you have a dependent child and you meet certain requirements. This status allows you to use the same tax rates and benefits as married filing jointly for two years after the year of death.
In any case, you need to use your own SSN and report only your own income and deductions.
How do I file a final return using FreeTaxUSA?
Spouse Filing:
- Follow his menu path: Personal > Taxpayer Information.
- At the bottom of the page this question is asked, “Has this person passed away before the filing of this tax return?” Choose 'Yes' if they are the deceased.
- If the spouse is the one who passed away, continue to the Spouse Information page find the question, “Has this person passed away before the filing of this tax return?” and choose 'Yes'.
- Enter the date of death. ‘Save and Continue’.
- Continue entering all subsequent information as you normally would.
- After finalizing the return, the software will give further instructions if additional information should be mailed with the return.
Non-Spouse Filing:
- Follow the same steps as above.
- When you arrive at the ‘Misc’ menu, choose ‘Deceased Taxpayer or Spouse (Form 1310)’.
- Enter the information as it applies.
