Final Income Tax Return for a Deceased Person: What Executors Need to File

Taxes don't stop at death. The deceased may owe a final income tax return covering the period from January 1 (or the start of the tax year) through the date of death. If the estate earns income after death — from interest, rent, dividends, or asset sales — a separate estate income tax return may also be required, depending on local filing rules.

Missing these filings exposes the executor to personal liability for penalties and interest. The IRS, HMRC, CRA, and ATO don't cut executors slack for being grieving family members.

The Final Individual Return

This covers the deceased's personal income from the start of the tax year through the date of death. It's filed on the same form they would have used if alive.

United States — IRS Form 1040

• Who files: The executor or surviving spouse, as applicable
• Deadline: April 15 of the year following death (same as a regular return). If the death occurred between January 1 and April 15, you may need to file returns for two years.
• Special rules: Write "DECEASED" across the top of the return, followed by the decedent's name and date of death. A surviving spouse can file jointly for the year of death. Report all income (wages, Social Security, pensions, investment income) earned through the date of death.
• Medical expenses: The executor can choose to deduct medical expenses on either the final income tax return or the estate tax return (Form 706) — whichever provides the greater tax benefit.

United Kingdom — HMRC

• Who files: The executor
• Deadline: HMRC will tell you whether a Self Assessment return is required and give you a due date. If the normal online Self Assessment deadline applies, it is January 31 following the end of the tax year. Tell HMRC about the death as soon as possible, or use Tell Us Once.
• Special rules: The tax year runs April 6 to April 5. Report all income through the date of death. Unused personal allowance cannot be transferred to the estate.

Canada — CRA T1 Return

• Who files: The executor (called the "legal representative")
• Deadline: For deaths from January 1 through October 31, the due date is April 30 of the following year; for deaths from November 1 through December 31, it is six months after the date of death. If the deceased or their co-resident spouse or partner was self-employed, the due date is generally June 15 for deaths through December 15, or six months after death for later deaths. Any balance owing remains due on the normal payment date.
• Deemed disposition: Canada treats death as a deemed sale of all capital property at fair market value. The estate owes capital gains tax on any unrealized appreciation. This is often the largest single tax liability of the estate.
• Optional returns: Canada allows up to three optional T1 returns for eligible income: rights or things, partner or proprietor income, and income from a Graduated Rate Estate. These are optional and may reduce the overall tax owing.

Australia — ATO Individual Return

• Who files: The executor (called the "legal personal representative")
• Deadline: The regular October 31 deadline, or later if the deceased used a tax agent
• Special rules: No deemed disposition at death. Capital gains tax is deferred — beneficiaries inherit the deceased's original cost basis and pay CGT when they eventually sell the asset.

The Estate Income Tax Return

Income the estate earns after the date of death — such as rent, dividends, or interest — may need to be reported on a separate estate return, depending on the jurisdiction's filing requirements.

United States — IRS Form 1041

• Who files: The executor, using the estate's EIN (not the deceased's SSN)
• Filing requirement: A domestic estate generally files Form 1041 if gross income is $600 or more for the tax year, or if it has a nonresident alien beneficiary.
• Deadline: The 15th day of the 4th month after the estate's tax year ends. The executor can choose a fiscal year or calendar year for the estate.
• Key point: Income distributed to beneficiaries during the tax year is generally reported on the beneficiaries' individual returns (via Schedule K-1), not on the estate's return. Income retained in the estate is taxed at the estate's rates, which reach the top bracket above $15,650 of taxable income in 2025.

United Kingdom — SA900 Trust and Estate Return

• Who files: The executor
• Deadline: January 31 for online filing, or October 31 for paper filing, following the end of the relevant tax year.
• Informal administration: Estate income up to £500 per tax year is generally not subject to income tax as it arises. Other filing criteria may still require a Trust and Estate return.

Federal Estate Tax (US Only)

If a U.S. citizen or resident's gross estate, plus adjusted taxable gifts and specific exemption, exceeds the filing threshold — $13.99 million for 2025 or $15 million for 2026 — the executor generally must file IRS Form 706, the federal estate tax return. A Form 706 may also be filed below the threshold to elect portability of a deceased spouse's unused exclusion. The statutory rates are progressive from 18% to 40%; the exclusion and available credits determine whether tax is owed. For nonresident aliens, the research identifies a $60,000 exemption for U.S.-situs assets, so cross-border estates need separate review.

This return is due 9 months after the date of death, with a 6-month extension available.

Most estates fall well below the federal filing threshold and don't owe federal estate tax. Some states impose their own estate or inheritance taxes at lower thresholds; check the current rules for the state where the decedent lived or held property.

UK Inheritance Tax

Inheritance tax at 40% applies to estates valued above £325,000 (the nil-rate band), with an additional £175,000 residence nil-rate band if the home passes to direct descendants. The executor files Form IHT400 with HMRC. Transfers to a UK-domiciled spouse are fully exempt.

Common Mistakes

• Missing the deemed disposition in Canada. This catches many executors off guard — the estate can owe tens of thousands in capital gains tax on assets that were never actually sold.
• Forgetting about state estate taxes. Even if the estate is under the federal exemption, some US states impose their own estate or inheritance taxes at much lower thresholds.
• Not applying for an EIN. You can't open an estate bank account or file Form 1041 without one. Apply at IRS.gov — it takes five minutes.
• Filing under the wrong SSN. The final individual return uses the deceased's SSN. The estate return uses the estate's EIN. Mixing these up delays processing.
• Distributing assets before tax clearance. If the estate distributes everything and then can't pay the tax bill, the executor is personally liable for the shortfall.

Keeping the Tax Paperwork Straight

The tax filing requirements alone generate enough paperwork to overwhelm a full-time administrator, let alone a grieving family member doing this for the first time. Multiple deadlines, multiple forms, multiple jurisdictions — and personal liability for getting any of it wrong.

Our How to Read and Execute a Will toolkit includes a tax compliance filing checklist and deadline tracker that maps every required filing by jurisdiction, with space to record confirmation numbers and payment receipts.