What to Do When Someone Dies: Tax Checklist

Immediate Steps to Take When Someone Dies and Taxes Are Involved

Knowing what to do when someone dies and taxes are due isn’t intuitive. In addition, it often falls on your shoulders during an already overwhelming time. For many survivors, the process is foreign and complex.

If you’re a surviving spouse or personal representative, this guide walks you through exactly what to do next, step by step. Here are the steps to take in brief. 

1. Obtain certified copies of the death certificate from the vital records (or equivalent) office in the state where the death occurred or the funeral home if the person was cremated or buried. Also, death certificates are more easily requested and received from the County where the person passed away.
2. Funeral directors typically report the death to the Social Security Administration through electronic death registration systems. Survivors should confirm the death was reported so benefits stop correctly and survivor benefits can be reviewed.
3. Notify important parties such as the deceased’s employer (for any final pay, benefits, or death benefits), banks and financial institutions, insurance companies (life, health, auto, etc.), and others (e.g. pension, union, government benefit programs).
4. Begin estate administration or probate (if applicable), obtaining legal authority (e.g. Letters Testamentary or similar) to act for the estate.
5. If you are acting as executor, administrator, or other fiduciary, file Form 56 to notify the IRS of your authority. Surviving spouses filing jointly generally do not need to file Form 56 unless also serving as fiduciary
     • Request deceased person’s tax records (transcripts or prior returns) using IRS procedures, providing proof of your authority and a copy of death certificate as required.
6. File the deceased’s final individual income tax return (e.g. Form 1040 or 1040-SR) covering income up to the date of death, claiming appropriate credits and deductions. The return should note that the person is deceased (with name and date of death) and must be signed by the person authorized (surviving spouse, executor, or personal representative).
7. If needed, file additional estate or fiduciary tax returns (for the estate or trust), obtain an EIN for the estate, and allocate income, distributions, or deductions appropriately.
8. Distribute assets and close out accounts, after paying debts, taxes, and administrative expenses, following state law or the decedent’s will or trust.

Source: SSA Death Reporting Procedures

In the next section, we’ll cover how to handle your loved one’s final tax return. 

How to Notify the IRS and File a Final Tax Return After Death

The IRS still requires a final federal income tax return (Form 1040 or 1040-SR) covering income earned up to the date of your loved one’s death.

If you are a surviving spouse, you may file a joint return for the year of death as long as you did not remarry before year-end. The return must be signed by the surviving spouse and, if appointed, the executor or personal representative.

Source: IRS Pub. 559, Filing a Final Return

Handling taxes after a death can feel overwhelming. This infographic walks you through the key steps—clearly, simply, and in the right order.

You may instead choose to file as Married Filing Separately. In that case, the personal representative (or executor) files the deceased person’s separate return. Any refund owed to the deceased is claimed using Form 1310—unless a court-appointed representative is already handling the estate.

After the year of death, you may qualify to file as a Qualifying Surviving Spouse for up to two tax years, provided you have a dependent child, do not remarry, and meet household support requirements.

Executors or representatives should also submit Form 56 to notify the IRS of their fiduciary role and gather documents such as W-2s, 1099s, and brokerage statements to complete the final return.

Source: IRS Pub. 501, Filing Status

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What to Know About Filing Deadlines and Extensions

A deceased person’s final federal income tax return (Form 1040 or 1040-SR) is generally due on the same schedule as everyone else’s—Tax Day, typically April 15 of the year following the death. If April 15 falls on a weekend or federal holiday, the due date moves to the next business day.

Filing by that deadline helps you avoid late-filing and late-payment penalties.

Pro Tip: Send final returns or IRS correspondence by certified mail or an IRS-approved private-delivery service to ensure proof of timely filing. You can also e-file the return using filing software or a professional.

If you need more time, file Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) before the April deadline. This extends the filing date by six months—usually to October 15—but does not extend the time to pay any taxes owed. To prevent interest and penalties, pay any estimated balance by the original due date.

Executors or surviving spouses can e-file Form 4868 or mail it with payment using IRS Direct Pay or EFTPS.

How Taxes, Assets, and Debts Are Handled After Death

If you file a joint return with your late spouse, you’ll generally receive any tax refund they would have been owed. However, when filing jointly, both spouses are jointly and severally liable for any taxes, penalties, or interest on that return—even if only one earned the income. If the debt was solely your spouse’s responsibility, you can request Innocent Spouse Relief using Form 8857 (Request for Innocent Spouse Relief).

Filing jointly typically offers a higher standard deduction and more favorable brackets. For the 2025 tax year, the standard deduction for married filing jointly is $31,500, and it’s expected to rise slightly in 2026 based on inflation. You can file jointly for the year your spouse passed away as long as you haven’t remarried before year-end.

If you are the executor or personal representative, you must ensure any unpaid taxes are paid from estate assets and properly distribute any refunds. You’re also responsible for managing estate property, paying final bills, and filing the estate’s Form 1041 (U.S. Income Tax Return for Estates and Trusts) if required. You file Form 1041 if a trust was set up to distribute assets, pay taxes and expenses for beneficiaries, or in case the deceased's gross income after death exceeds $600 annually.

In some states, property transfers following death may trigger reassessments or estate-level taxes, depending on state law. Larger estates may also face federal or state estate taxes, which the executor must calculate and pay using Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return) if applicable.

Recordkeeping

In general, the IRS recommends keeping tax records for at least three years, and longer in cases involving loss claims, unreported income, or estate matters. For full guidance on the best recordkeeping practices, check out this resource.

Source: IRS Pub. 552, Recordkeeping

Steps to Take When Filing a Final Income Tax Return for the Deceased

If you’re not sure what to do when someone dies and taxes are due, then you’re not alone. Hopefully, this guide has provided you with everything you need to know to take the right steps moving forward.

In a nutshell, you’ll want to obtain a death certificate, have the funeral director file SSA Form SSA-721, notify banks and employers, and file a final tax return for the deceased. Handling taxes after a loss is hard, but it doesn’t have to be confusing. Our free checklist keeps everything clear, organized, and stress-free, so you can focus on what matters most.