📝 What to Do When Someone Dies: A Tax Checklist for Survivors
Losing someone you love is never easy.
The last thing you want to think about is taxes—but handling them correctly can prevent penalties, protect refunds, and honor your loved one’s final affairs with care.
Whether you’re a surviving spouse, adult child, or court-appointed executor, this checklist walks you through the key tax steps—in plain English, with no jargon.
✅ Step 1: Notify the IRS & Secure an EIN (If Needed)
- Write “DECEASED” across the top of any tax return you file for the decedent, along with their name and date of death.
- Apply for an Estate EIN at IRS.gov/EIN if:
- The estate earns income (rent, interest, dividends)
- You’ll file Form 1041 (Estate Income Tax Return)
- There are assets to manage beyond simple bank accounts
💡 Note: You don’t need an EIN just to file the decedent’s final Form 1040.
✅ Step 2: File the Final Individual Tax Return (Form 1040)
- Who files? The personal representative (executor/administrator) or surviving spouse.
- What to include? All income the decedent earned up to the date of death.
- Due date: April 15 of the year after death (e.g., April 15, 2026, for someone who died in 2025).
- Filing status:
- Married filing jointly is allowed for the year of death (if the surviving spouse doesn’t remarry).
- Surviving spouses may qualify for “Qualifying Surviving Spouse” status for two more years if caring for a dependent child.
📌 Don’t attach the death certificate—just keep it for your records.
✅ Step 3: Handle “Income in Respect of a Decedent” (IRD)
Some income isn’t paid until after death—but it still belongs to the decedent. This is called IRD, and it includes:
- Unpaid wages or bonuses
- Retirement account distributions payable to the estate
- Proceeds from a sale agreed to before death (e.g., tractor sold but not yet paid)
- Accrued interest or dividends
💡 Who reports IRD?
- Estate: If it receives the payment → report on Form 1041
- Beneficiary: If you receive it directly → report on your personal return
✅ Step 4: Claim Medical Expenses (Even After Death)
You can deduct qualified medical expenses paid within one year after death on the decedent’s final return—if:
- You itemize deductions
- Total medical costs exceed 7.5% of AGI
✅ This includes bills paid by the estate or by family members.
✅ Step 5: Request a Refund (If Owed)
To claim a refund due to the decedent:
- Surviving spouse filing jointly: Just file the return.
- Executor or other person: Attach Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer).
⚠️ No Form 1310 = refund denied.
✅ Step 6: File Estate Returns (If Required)
File Form 1041 if the estate earns $600+ in gross income or has a beneficiary who is a nonresident alien.
Also consider:
- Form 706 (Estate Tax Return): Required if the estate is worth over $13.61 million (2024 threshold)
- Form 709 (Gift Tax Return): If the decedent made large gifts during life
✅ Step 7: Know Special Protections
- Combat zone deaths: Full income tax forgiveness for the year of death + prior year (Pub 559, p. 10)
- Terrorism victims: Tax liability forgiven under the Victims of Terrorism Tax Relief Act
- Public safety officers: Certain death benefits are tax-free
💬 Final Advice from Uncle Joe
Grief is heavy enough—you shouldn’t carry tax stress too.
Take it one step at a time. Ask for help. And remember:
“The IRS expects compliance—but also compassion.”