Contributed by: Henry, FreeTaxUSA Agent, Tax Pro
Losing a family member is a challenging experience. Amidst the grieving process, there are some practical matters that need attention. One important task is figuring out how to file a tax return for the deceased. Understanding the steps involved and the applicable tax regulations can help ease this process.
IRS Publication 559, Survivors, Executors and Administrators, can be a great resource. It’s designed to help those in charge of the property (estate) of an individual who has died (decedent).
The taxpayer’s estate
Upon the death of a taxpayer, the taxpayer's estate is created, and a personal representative takes charge of managing it. The personal representative can be an executor, administrator, or anyone who is in charge of the decedent's property. Their main duties are to collect all the decedent’s assets, pay the decedent’s creditors, and distribute the remaining assets to the heirs or other beneficiaries.
The personal representative needs to:
- Apply for an employer identification number (EIN) for the estate.
- File Form 56 to notify the IRS of the creation of a fiduciary relationship (a personal representative is considered a fiduciary).
- Ensure all payers of income, including banks and brokerages, are promptly notified of the taxpayer’s death and are given the estate’s EIN to facilitate the proper reporting of income earned after the taxpayer's death (such as interest and dividends).
- File all tax returns, including income, estate, and gift tax returns, when due.
- Pay the tax determined up to the date of discharge from duties.
Filing a final tax return
If there’s a filing requirement, the taxpayer’s spouse or personal representative must file the final income tax return (Form 1040 or 1040-SR) of the decedent for the year of death, as well as any returns not filed for preceding years.
If the decedent doesn’t have an existing account with FreeTaxUSA that you’re able to access, you can create a new account for them. Be sure to enter your own email address and phone number for the contact information so you can do the 2-step authentication. It’s possible to have multiple accounts associated with the same email address or phone number, so you can do this even if you already have your own account set up using your email and phone number.
If the deceased taxpayer didn't have to file a return but had tax withheld, a return must be filed to get a refund. When claiming a refund on behalf of a deceased taxpayer, you’ll need to file Form 1310 unless you’re a surviving spouse filing a joint return with the decedent or a court-appointed representative filing an original Form 1040 with a court certificate attached showing your appointment.
In the software, you can add Form 1310 by going to Misc > Personal > Deceased Taxpayer or Spouse (Form 1310). You’ll be asked, “Has a court appointed or will a court appoint an executor or administrator for this decedent's estate?” If you answer “Yes,” you’ll be instructed to mail the return instead of e-filing, so a copy of the certificate showing your appointment can be included with your submission. If you answer “No,” you’ll be prompted to provide your information for Form 1310 to be generated.
Filling out Form 1040
When filing a return for a deceased taxpayer, the address you enter for the taxpayer is the address the IRS will use for any communication about the return. You’ll want to enter the address of whomever is handling the taxpayer’s estate.
The person who files the final tax return should write “Deceased,” the deceased taxpayer's name, and the date of death across the top of Form 1040. The software can do this for you. Simply enter the decedent’s information on the Taxpayer Information or Spouse Information screen, and answer “Yes” to the question, “Has this person passed away before the filing of this tax return?” A field will appear where you can enter the date of death.
You generally prepare and file the final return of a deceased person the same way you would if the person were alive. Report all income up to the date of death and claim all eligible credits and deductions. A joint return should show the decedent's income before death for the year and the surviving spouse’s income for the entire year.
Which filing status to use
Usually, filing status depends on whether the decedent was considered single or married at the time of death. For example, if your spouse died in 2024 and you didn’t remarry before the end of the year or if your spouse died in 2025 before filing a tax return for 2024, you can file a joint 2024 tax return.
A surviving spouse who has remarried in the year of their former spouse’s death must file with their new spouse, either jointly or separately. In this situation, the deceased spouse’s filing status becomes Married Filing Separately.
Signing the return
If a personal representative has been appointed, they must sign the return. For a joint return, the surviving spouse must also sign.
If no personal representative has been appointed, the surviving spouse on a joint return signs the return and writes in the decedent’s signature area “Filing as surviving spouse.”
If no personal representative has been appointed and if there is no surviving spouse, the person in charge of the decedent's property must file and sign the return as “personal representative.”
Locked SSN?
When someone passes away, the Social Security Administration notifies the IRS. Subsequently, the IRS locks the deceased person’s SSN to prevent identity theft and fraud. If the SSN is locked before you can file the final tax return, you’ll be unable to e-file. The IRS will reject any e-filed return that uses the locked SSN.
If you’re dealing with a locked SSN, select mail as the filing method instead. Mailing instructions will be provided in the software at the end of the filing process.
The death of a dependent
What happens if the decedent is a dependent on your tax return? The IRS allows you to claim the Child Tax Credit or Credit for Other Dependents for each dependent who was alive at any point during the year. This includes a dependent who died during the year. However, if your child wasn't born alive, you can't claim them as a dependent on your federal tax return. Your state may allow you to claim your unborn child as a dependent, so check your state tax website for additional information.
If your dependent died during the year and lived with you while they were alive, you’ll indicate the dependent lived with you for the entire year. In cases where your child didn't always live with you while they were alive (such as in situations of divorce), you’ll enter 7 or more months in the software if the child lived with you for more than half of the time they were alive during the year.
If your dependent child was born and died during the year and you don’t have an SSN for the child, you’ll enter “Died” in column (2) of the Dependents section and include a copy of the child's birth certificate, death certificate, or hospital records. The document must show the child was born alive. You may need to file by mail to attach the document.
However, our software requires you to enter an SSN for each dependent, so you won’t be able to prepare your return with us if this situation applies to you.
What happens in the following years?
After the year of death, a deceased dependent will not be included on future tax returns. If a spouse has passed away, their information is also removed from subsequent tax returns, and the surviving spouse may be listed as the primary taxpayer. This article (see soon to be published article “How do I change my filing status after the death of a spouse?”) provides more information on how to change your filing status after the death of a spouse.