How to File a Final Income Tax Return for Someone Who Died in Michigan

When someone dies in Michigan, their executor or surviving spouse must file a final Michigan individual income tax return (Form MI-1040) covering the period from January 1 of the year of death through the date of death. This is not optional. It is a legal requirement — and the April 15 deadline applies regardless of whether the death occurred in January or December. Here is exactly how to do it.

Step 1: Establish Who Is Responsible for Filing

The person legally responsible for filing the final MI-1040 depends on the decedent's marital status and estate circumstances:

• Surviving spouse: If the decedent was married at the time of death, the surviving spouse may file a joint MI-1040 for the full calendar year of death — even if the death occurred on the first day of the year. The surviving spouse signs their own name and writes "Filing as surviving spouse" where the decedent's signature would normally appear.

• Court-appointed personal representative (executor): If there is no surviving spouse, or if the estate requires formal probate, the court-appointed personal representative files on behalf of the decedent. They sign the return and note their role.

• Person in charge of the decedent's property: If no executor has been formally appointed, Michigan allows the person responsible for the decedent's financial affairs to file.

Important rule for surviving spouses: The joint filing option applies only for the year of death. In subsequent years, the surviving spouse files as single (or, if eligible, as qualifying surviving spouse for two years following the year of death, provided a dependent child lived with them).

Step 2: Gather the Required Income Documents

The final MI-1040 reports income earned from January 1 through the exact date of death. No income earned after that date belongs on this return — post-death income (interest, dividends, rental income) goes on the estate's fiduciary return (MI-1041), discussed in Step 6 below.

Gather:

• All W-2 forms for the calendar year (even if partial — the employer reports the full year, so you'll need the year-to-date figure through the death date if death occurred mid-year)
• 1099-INT and 1099-DIV for interest and dividend income through the date of death
• 1099-R for pension and retirement distributions received before death
• Any business income records (Schedule 1 equivalent) if the decedent was self-employed
• Documentation of any estimated tax payments made before death

Note on income after the date of death: Interest credited to a bank account after the date of death, dividends declared after death, or rental payments received after death are NOT included on the MI-1040. They belong to the estate and are reported on the MI-1041. This is a common error that creates problems at audit.

Step 3: Apply Michigan's Pension Deduction Rules

Michigan offers a pension deduction for retirement income on the MI-1040, governed by the taxpayer's birth year. For 2026, Revenue Administrative Bulletin (RAB) 2026-1 provides enhanced deductions for surviving spouses and public safety personnel. The rules are complex and birth-year-dependent:

• Taxpayers born before 1946: generally full deduction for public pension income; limited deduction for private pensions
• Taxpayers born 1946–1952: phase-in rules apply based on age and income thresholds
• Taxpayers born after 1952: more limited deductions that phase in by age

When filing jointly as a surviving spouse, apply the deduction based on the decedent's birth year for income earned by the decedent, and the surviving spouse's birth year for their own income. These are calculated separately on the MI-1040 Schedule 1.

This is a common error that results in overpayment. Take 20 minutes with the MI-1040 instructions booklet for the specific year of death and confirm which tier applies.

Step 4: Calculate the Standard Deduction and Personal Exemptions

For tax year 2026, Michigan follows federal rules as the baseline but applies Michigan-specific modifications. Key figures:

• Federal standard deduction (2026): $32,200 for married filing jointly; $16,100 for single filers — these are the federal baseline figures referenced by the MI-1040 calculation
• Michigan personal exemption: Michigan provides a state-level exemption per taxpayer and dependent — confirm the current-year figure in the MI-1040 instructions, as it adjusts annually

Michigan uses federal adjusted gross income (AGI) as its starting point, then applies Michigan-specific additions and subtractions to arrive at Michigan taxable income. The full list of additions and subtractions is on Schedule 1 of the MI-1040.

Step 5: Sign and File the Return

How to sign:

• Surviving spouse filing jointly: sign your name normally; where the decedent would sign, write "Deceased" and the date of death
• Personal representative: sign your name and note your role ("Personal Representative" or "Executor")
• If no probate is required: the person responsible for the decedent's property signs and notes the reason no personal representative has been appointed

Where to write the date of death: Write "DECEASED" and the date of death at the top of the MI-1040, after the decedent's name.

Filing address: Michigan Department of Treasury, Lansing, MI 48956 (for returns with a payment) or Michigan Department of Treasury, Lansing, MI 48974 (for returns expecting a refund).

Refund claims: If the final return generates a refund and no probate estate has been opened, the surviving spouse claims the refund directly on the joint return. If a probate estate is open, the personal representative receives the refund and accounts for it as an estate asset.

Deadline: April 15 of the year following the year of death. A death in November 2025 means a final MI-1040 due April 15, 2026. Extensions (Form MI-4868) provide 6 additional months to file, but not to pay — any tax owed must be estimated and paid by April 15 to avoid interest.

Step 6: Determine Whether an MI-1041 is Also Required

The final MI-1040 covers income through the date of death. What happens after?

The moment a person dies, their estate becomes a separate legal entity and a separate taxpayer. If that estate generates any income during administration — rent from a property, dividends from stocks, interest accumulating in bank accounts — the estate must file a Michigan Fiduciary Income Tax Return (Form MI-1041).

The filing threshold is $600 in gross income in any calendar year. If the estate generates even $601 in interest income over the course of the administration, an MI-1041 is required for that year.

Getting an EIN: If an MI-1041 will be required, the executor must obtain a federal Employer Identification Number (EIN) for the estate from the IRS. The EIN replaces the decedent's Social Security Number for all post-death financial activity. You can apply for an EIN at IRS.gov — the online application takes about 10 minutes and issues the EIN immediately.

MI-1041 deadline: Also April 15 of the following year for calendar-year estates. An extension (federal Form 7004) provides an automatic 5.5-month extension to file — but again, not to pay.

Payment quirk: Michigan Treasury cannot accept electronic payments for the MI-1041. Despite any e-filing requirement (tax preparers who file 11 or more fiduciary returns must e-file the return), the payment itself must be mailed as a physical check accompanied by Form MI-1041-V. Write the full Federal Employer Identification Number on the check. Treasury will not process a single check covering multiple estates.

The Michigan Final Tax & Estate Tax Guide has a dedicated chapter on both the MI-1040 final return and the MI-1041 fiduciary return, including a CPA document checklist worksheet to organize everything before you meet with a tax preparer.

Common Errors to Avoid

Including post-death income on the MI-1040: Income earned after the date of death belongs on the MI-1041, not the final personal return. Mixing these triggers corrections and potential penalties.

Missing the EIN before opening an estate bank account: Banks will ask for an EIN to open an estate checking account. Apply before you go to the bank.

Confusing federal Form 1041 with Michigan MI-1041: These are parallel requirements. Filing the federal 1041 does not satisfy the Michigan MI-1041 requirement, and vice versa. Both must be filed if the estate generates income.

Overlooking the estimated payment requirement: If the estate is expected to owe more than $500 in Michigan fiduciary income tax, quarterly estimated payments are required using Form MI-1041ES. Missing these generates an underpayment penalty, calculated on Form MI-2210.

Filing a single MI-1041-V check for multiple estates: Michigan Treasury explicitly prohibits processing fiduciary payment vouchers for multiple estates on one check. One check per estate.

Who This Is For

• Surviving spouses filing a joint MI-1040 for the year of death
• Executors and personal representatives of Michigan decedents who need to file the final personal return
• Anyone who needs to understand when an MI-1041 is required in addition to the final MI-1040
• Executors who need to get an EIN and open an estate bank account

Who This Is NOT For

• Estates over $15 million that also owe federal estate tax (federal Form 706, due within 9 months of death) — engage an estate tax attorney and CPA
• Situations involving complex multi-state income during the final year of life — professional tax preparation is warranted

FAQ

Can a surviving spouse file a joint MI-1040 in the year of death? Yes. A surviving spouse may file a joint Michigan MI-1040 for the entire calendar year of the decedent's death, even if death occurred early in the year. No special election is required. The surviving spouse signs normally and notes "Filing as surviving spouse" where the decedent would sign.

What is the deadline to file the final MI-1040 for a Michigan decedent? April 15 of the year following the year of death. If the person died in any month of 2025, the final MI-1040 is due April 15, 2026. The same deadline applies to the MI-1041 fiduciary return. Extensions are available but do not extend the payment deadline.

Do I need to file both a federal Form 1040 and a Michigan MI-1040? Yes. The final individual income tax obligation requires both a federal return (IRS Form 1040) and a Michigan state return (MI-1040). If a fiduciary return is also required, that means both a federal Form 1041 and a Michigan MI-1041.

How do I get a refund if the decedent overpaid taxes? If filing jointly with a surviving spouse, the refund goes to the surviving spouse directly on the joint return. If filing solely on behalf of the estate, the refund is issued to the estate. If you need a refund issued to a person other than a surviving spouse and no probate estate has been opened, you may need to file IRS Form 1310 (and the Michigan equivalent) to claim the refund as a representative of the estate.

What if the decedent had unfiled returns from prior years? Each unfiled year requires its own return, filed with the corresponding year's forms and rates. Back-year returns for Michigan are filed at Michigan Department of Treasury, Lansing, MI 48956. Penalties for late filing and late payment accrue separately for each year. A CPA familiar with Michigan tax procedure is worth consulting for back-year situations.

Is there a Michigan inheritance tax I need to worry about as a beneficiary? No. Michigan repealed its inheritance tax for deaths occurring after September 30, 1993. Beneficiaries receive assets free of any state inheritance or estate tax. The only post-death income tax a beneficiary might owe is on distributions from inherited traditional IRAs or 401(k)s — those withdrawals are subject to ordinary income tax because the decedent deferred taxes on those contributions during their lifetime.

Filing the final MI-1040 for a deceased Michigan resident is manageable once you understand the structure: income through the date of death on the MI-1040, income after that date on the MI-1041, and both due by April 15. The pension deduction rules and the MI-1041-V payment requirement are the two most commonly missed Michigan-specific details.

The Michigan Final Tax & Estate Tax Guide walks through each step — from obtaining the EIN to filing the final MI-1041 — with a master deadline calendar and a CPA document checklist worksheet included.

See more Michigan guides →