Filing Taxes for a Deceased Person in Pennsylvania (PA-40 Final Return)

When someone dies in Pennsylvania, their individual tax obligations don't disappear — they transfer to the executor. As the personal representative of the estate, you are legally responsible for filing the decedent's final Pennsylvania personal income tax return (Form PA-40), covering income earned from January 1 of the year of death through the exact date of death.

This is separate from the estate's own income tax return (PA-41), which covers income the estate itself generates after death. Getting these two returns right — and understanding where each one's income stops and starts — is one of the more technically precise parts of estate administration.

What Income Goes on the Final PA-40

The decedent's final PA-40 reports all Pennsylvania-taxable income the decedent received (or constructively received) from January 1 of the year of death up to and including the date of death. Nothing after that date belongs on this return.

What's included:

• Wages, salaries, and tips paid for work performed before death
• Self-employment income from the decedent's business through the date of death
• Interest and dividends received before death (if on cash basis, only amounts actually received)
• Rental income received before death
• Capital gains from asset sales that closed before death
• Pension and retirement income received before death

What's excluded: Pennsylvania follows the cash basis of accounting for the final PA-40 in most cases. Income that was earned before death but not yet received — such as a final paycheck mailed after the date of death or dividends declared but not yet paid — is not included on the final PA-40. That income belongs to the estate and goes on the PA-41 fiduciary income tax return when received.

This is a significant difference from federal rules, where certain types of "income in respect of a decedent" follow different treatment. For Pennsylvania purposes, the date of receipt controls what goes on the final PA-40.

The Deadline for Filing

The final PA-40 is due on April 15 of the year following the year of death, just like any other Pennsylvania personal income tax return. If someone died on October 15, 2025, their final PA-40 is due April 15, 2026.

If you cannot complete the return by April 15, Pennsylvania allows an automatic extension to file (not to pay) until August 15. However, any tax owed on the final return is still due by April 15. Paying late triggers interest on the unpaid balance.

The executor signs the final PA-40 on behalf of the decedent, indicating in the signature area that they are signing as the personal representative and noting the decedent's date of death.

Surviving Spouse: The Joint Return Option

If the decedent was married at the time of death and their spouse did not remarry during the same calendar year, the surviving spouse has the option to file a joint PA-40 for the year of death.

How the joint return works for Pennsylvania:

• The surviving spouse includes all of their own income and deductions for the entire calendar year
• The decedent's income and deductions are included only for the period from January 1 through the date of death
• Income the decedent would have received after death — such as a year-end bonus or deferred compensation — is not included on the joint PA-40 (it belongs to the estate's PA-41)

Filing a joint return for the year of death is optional, not required. Whether it's advantageous depends on each spouse's income, deductions, and applicable credits. A tax professional familiar with Pennsylvania's rules should evaluate the comparison.

The following year: In the year after the date of death, the surviving spouse files their own individual PA-40 as a single filer or may qualify for the state's equivalent of the Qualifying Surviving Spouse status (which allows use of certain favorable filing status rules for two years following the year of death if they have a dependent child). Pennsylvania's rules here track federal law closely.

Refunds Due to the Decedent

If the decedent's final PA-40 results in a refund, the estate is entitled to receive it. The executor should attach a completed REV-459B (Consent to Transfer, Adjust, or Correct PA Estimated Personal Income Tax Account) when filing if the decedent had estimated tax payments on file, to properly transfer or apply those payments.

The refund check will be made payable to the estate. Deposit it into the estate's dedicated bank account.

When There Is No Estate Open

What if the decedent had only small assets — below the threshold for formal probate — and no estate has been formally opened? The final PA-40 can still be filed. In this case, the surviving spouse, the person who paid the decedent's final expenses, or the person who has custody of the decedent's financial records can file on behalf of the decedent.

If a refund is owed, PA may require additional documentation to release it to someone who isn't a formally appointed executor. The Department of Revenue has procedures for these situations — contact them directly if you're in this circumstance.

Common Mistakes on the Final PA-40

Including post-death income. The most common error is including income received after the date of death on the final PA-40. A dividend paid two weeks after death, a paycheck for work completed before death but issued afterward, or rental income for the month the decedent died that arrived in the estate's account after death all belong on the PA-41 fiduciary return, not the final PA-40.

Missing earned income that was paid before death. The reverse error also occurs: wages from the final payroll period that were paid before death are sometimes overlooked because the family is distracted during the grieving period and doesn't gather all income records. The employer will issue a W-2 or 1099 for the full year; the executor must determine what portion relates to the pre-death period.

Forgetting Pennsylvania-specific adjustments. Pennsylvania's income tax has unique exclusions and inclusions that differ from federal rules. Retirement income from certain pension plans is excluded from Pennsylvania taxation. Interest from Pennsylvania-issued bonds is exempt. Confirming which of the decedent's income sources are subject to Pennsylvania income tax — rather than assuming all federally taxable income is also state taxable — prevents both overpayment and underpayment.

Missing the tax on business income. If the decedent operated a sole proprietorship or had a Schedule C business, the business income through the date of death belongs on the final PA-40. Executors who are unfamiliar with the business may overlook the ongoing receivables or income earned but not yet collected.

The Sequence Among Pennsylvania's Three Tax Returns

Estate administration in Pennsylvania involves three separate tax returns, each covering a different taxpayer and time period:

1. Final PA-40 (decedent's last personal return): Income from January 1 of the year of death through the date of death. Due April 15 of the following year.
2. PA-41 (estate's fiduciary return): Income generated by estate assets from the date of death through the estate's close. Due April 15 following each tax year the estate is open. File only if estate income exceeds $33 in Pennsylvania-taxable income.
3. REV-1500 (inheritance tax return): Not an income tax return — this is the transfer tax on the value of assets passing to beneficiaries. Due nine months from the date of death.

These three returns have different due dates, are filed with different offices, and cover different taxpayers. Managing all three simultaneously is the core challenge of Pennsylvania estate administration.

The Pennsylvania Final Tax & Estate Tax Guide covers all three returns with form-by-form walkthroughs, a unified deadline calendar, and guidance on coordinating the income and inheritance tax obligations to close the estate cleanly and avoid personal liability.

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