Intestate Estate Tax Filing: Form 1040, Form 1041, and What You Owe

Dying without a will doesn't change the IRS deadlines. The personal representative generally files the decedent's final return if required, and the estate may need separate returns for income earned during administration. Miss a required filing or payment and penalties can reduce the inheritance — or create personal exposure if assets have already been distributed.

The Final Individual Return (Form 1040)

The deceased's last Form 1040 covers January 1 through the date of death. For a calendar-year taxpayer, it's generally due by April 15 of the following year, subject to next-business-day adjustments for weekends and legal holidays. If death occurred after the filing deadline and no extension was filed, you may already be late.

The personal representative or an eligible surviving spouse signs the return. For a paper return, write "DECEASED," the decedent's name, and the date of death across the top; for an e-filed return, follow the software instructions for reporting the death. If the deceased was married, the surviving spouse may be able to file jointly for the year of death if eligible and not remarried that year.

Income sources to capture: wages earned through the date of death, interest and dividends accrued but not yet paid (depending on accounting method), rental income, Social Security benefits received, retirement distributions, and any gains from asset sales earlier that year.

Estate Income Tax (Form 1041)

If a domestic estate has gross income of $600 or more during the tax year, it generally must file Form 1041. This catches income generated after the date of death: bank interest on estate accounts, rental income from estate property, dividends on stocks held in the estate, and capital gains if you sell assets during probate.

The estate gets its own tax ID number (EIN) — apply through the IRS website immediately after your appointment. The estate's tax year can begin on the date of death, and you choose either a calendar year or a fiscal year ending in any month.

Form 1041 is due by the 15th day of the fourth month after the estate's tax year ends. For a calendar-year estate, that's April 15.

State-Level Tax Obligations

Most states require a final state income tax return mirroring the federal 1040. Some states also impose estate taxes with lower thresholds than the federal exemption, which is $15 million for people who die in 2026. As of 2026, twelve states plus DC levy their own estate taxes, with exemptions as low as $1 million in Oregon.

Check whether the deceased's state of residence has an inheritance tax (paid by heirs based on what they receive) versus an estate tax (paid by the estate before distribution). Five states — Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania — impose inheritance taxes, and rates vary based on the heir's relationship to the deceased. Iowa's inheritance tax does not apply to deaths on or after January 1, 2025.

What Intestacy Changes About Tax Filing

The tax forms are the same whether there's a will or not. But intestacy creates practical complications:

• No executor was named, so the court-appointed administrator handles filings. You may not know the deceased's tax history, preparer, or which accounts generated income
• Asset discovery takes longer without an estate plan, which means income sources surface after the return is filed. Be prepared to file amendments
• Administration takes longer, so the estate generates more income during probate — more 1041 filing years
• Deductions for administration expenses (attorney fees, bond premiums, appraisal costs) can offset estate income on Form 1041. Intestate estates typically have higher administration costs, making these deductions more significant

Requesting the Deceased's Tax History

File IRS Form 4506-T to request transcripts of the deceased's prior returns. This can reveal income sources, filing status, and outstanding liabilities you might not know about. Allow time for IRS processing.

You'll need the death certificate, your Letters of Administration, and the deceased's Social Security number. The IRS will only release transcripts to someone with legal authority over the estate.

The Intestacy Survival Guide includes a tax filing timeline and an asset inventory worksheet that maps discovered accounts to their tax reporting obligations.