Filing Final Tax Return for Deceased Parent

Someone has to file your parent's final tax return, and if you're the executor or administrator, that someone is you. The return covers their income from January 1 through the date of death, and the process is more straightforward than most people expect once you know which forms to use.

The Final 1040

The deceased's final personal tax return is a standard Form 1040 — the same form they would have filed if they were alive. It covers all income earned from January 1 of the death year through the date of death.

Write "DECEASED" across the top of the return, followed by the decedent's name and the date of death. The executor or administrator signs the return on behalf of the deceased.

If the deceased was married and the surviving spouse hasn't remarried by year-end, they can file a joint return with the deceased for the death year. This often results in a lower tax bill because joint filers get a larger standard deduction and more favorable bracket thresholds.

Filing deadline: The return is due on the normal tax deadline — April 15 of the year after death. If the death occurred between January and April, you may need to file two returns: one for the prior year (if not yet filed) and the final return for the current year.

What Income to Include

Report all income your parent received or was entitled to from January 1 through the date of death:

• Wages and salary (the employer issues a W-2 for the partial year)
• Interest and dividends earned through the death date
• Retirement plan distributions received before death
• Social Security benefits received before death
• Business or self-employment income through the death date
• Rental income through the death date

Report income received by the estate after the date of death (such as bank interest or rent collected afterward) on Form 1041, if an estate return is required, not on the final 1040.

Form 1310: Claiming the Refund

If the final return generates a refund, someone needs to claim it. A surviving spouse filing a joint return does not need Form 1310. A court-appointed personal representative filing the original return can claim the refund by attaching proof of appointment. Other people claiming the refund generally use Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer), subject to the form's instructions.

This is a one-page form that identifies who is claiming the refund and their relationship to the deceased. File it with the final 1040.

The Estate Income Tax Return: Form 1041

For a domestic estate, the fiduciary must file Form 1041 if gross income for a tax year is at least $600 or the estate has a nonresident alien beneficiary. Form 1041 (U.S. Income Tax Return for Estates and Trusts) reports income earned by the estate during administration — interest on bank accounts, dividends, rental income, and capital gains from selling estate assets.

Before you can file a 1041, you need an Employer Identification Number (EIN) for the estate. Apply online at irs.gov — it's free and instant.

The estate's tax year can begin on the date of death and the executor chooses either a calendar or fiscal year. The first return is due by the 15th day of the fourth month after the chosen tax year ends.

Federal Estate Tax: Form 706

Don't confuse the income tax returns with the federal estate tax. Form 706 (United States Estate Tax Return) is required when the gross estate, increased by adjusted taxable gifts and the specific gift tax exemption, exceeds the filing threshold — $15 million for people who die in 2026. A return must also be filed to elect portability for a surviving spouse. The threshold changes by year; check the IRS instructions for the year of death.

If the estate exceeds the threshold, Form 706 is due nine months after the date of death, with a six-month extension available.

Deadlines That Matter

Extensions to file may be available: file Form 4868 for the personal return, Form 7004 for the estate income tax return, or Form 4768 for Form 706. An extension to file does not automatically extend the time to pay tax due.

Canada, UK, and Australia

Canada: File a Terminal Return (T1) for the year of death. The deadline depends on the date of death and whether the deceased or their co-resident spouse or common-law partner was self-employed: it is generally April 30 of the following year for deaths from January through October, and six months after death for deaths in November or December. If the deceased or their co-resident spouse or common-law partner was self-employed, the deadline is generally June 15 of the following year for deaths from January through December 15, or six months after death for deaths from December 16 through December 31. Canada's deemed disposition rule means capital property is treated as sold at fair market value immediately before death, triggering capital gains. The inclusion rate is 50% — half the capital gain is added to income.

United Kingdom: Notify HMRC through the Tell Us Once service. The executor may need to file a Self Assessment return for the tax year of death if the deceased had untaxed income. Inheritance Tax is normally not due below the £325,000 threshold, or up to £500,000 when the estate qualifies for the residence nil-rate band, but an estate may still need to report its value.

Australia: Lodge a date-of-death tax return with the Australian Taxation Office. Capital gains tax on inherited assets is generally deferred until the beneficiary sells. A full main residence exemption may apply if the home was the deceased's main residence immediately before death, was not being used to produce income, and is sold and settled within two years.

The Young Adult's Guide to Losing a Parent includes a tax filing checklist with deadlines, required forms, and step-by-step instructions for executors managing their first estate.