In general, file and prepare the final individual income tax return of a deceased person the same way you would if the person were alive. Report all income up to the date of death and claim all eligible credits and deductions.
If the deceased had not filed individual income tax returns for the years prior to the year of their death, you may have to file.
Its your responsibility to pay any balance due and to submit a claim if theres a refund.
It is already hard enough to deal with the death of a loved one without having to figure out taxes. A common question is what happens if someone who has died gets a tax refund? Who gets the money? And how do you even file their final tax return?
As someone who’s helped several friends through this process, I wanted to share what I’ve learned about handling tax refunds for those who have passed away. The IRS has specific procedures for this situation, and knowing them can save you a lot of headaches during an already stressful time.
Who Is Entitled to the Deceased Person’s Tax Refund?
When someone dies, any tax refund they’re owed doesn’t just disappear—it becomes part of their estate. The IRS follows a specific hierarchy for who can claim this refund:
- Court-appointed personal representative (executor or administrator)
- Surviving spouse who files a joint return
- Other next of kin or person handling the deceased’s property
It’s important to understand that whoever receives the refund isn’t just getting free money They have a fiduciary responsibility to use these funds appropriately—first paying any outstanding debts of the deceased, then distributing the remainder according to the will or state inheritance laws
Filing the Final Federal Tax Return
After someone dies, their surviving spouse or representative needs to file a final tax return. Here’s what you need to know about this process:
When and How to File
- The final tax return follows the same deadlines as regular returns (typically April 15th)
- You’ll use the standard Form 1040 or Form 1040-SR for seniors
- The return must report all income up to the date of death
- All eligible credits and deductions can still be claimed
Identifying a Deceased Taxpayer on the Return
When filing electronically, follow the directions provided by your tax software regarding signature and notation requirements For paper returns, write “DECEASED,” the person’s name, and their date of death across the top of Form 1040
Who Should Sign the Return?
Who signs the final tax return depends on who is filing:
- Court-appointed representative: Must sign the return. If it’s a joint return, the surviving spouse must also sign.
- Surviving spouse filing jointly: Should sign and write “filing as surviving spouse” in the signature area.
- No appointed representative or surviving spouse: The person handling the deceased’s property signs as “personal representative.”
Required Documentation for Claiming the Refund
Most of the time, you’ll need to send extra paperwork with your final tax return in order to get a refund:
Form 1310: Statement of Person Claiming Refund Due a Deceased Taxpayer
This form officially notifies the IRS of the taxpayer’s death and identifies who is legally entitled to the refund. However, Form 1310 isn’t required for:
- A surviving spouse filing a joint return
- A court-appointed representative (if they attach a copy of their court certificate)
For anyone else claiming the refund (like a child or other relative), Form 1310 is mandatory.
Court Documents for Representatives
If you’re a court-appointed representative, you should attach a copy of the court document showing your appointment to the tax return.
How the Refund Payment Is Issued
The IRS will send the refund after they process the last tax return. As of June 18, 2025, the agency will usually give the refund to both spouses. Both the names of the living and deceased spouse may be on the check or direct deposit.
If someone other than a surviving spouse filed the return:
- For a court-appointed representative: The check will be issued in the representative’s name and the estate
- For others who claimed using Form 1310: The check will be issued in their name
Special Filing Status Considerations
Qualifying Widow/Widower Status
People who have lost a spouse and have children who depend on them may be able to get a special filing status. For two years after their spouse dies, they can file as a “Qualifying Surviving Spouse,” which has a number of benefits:
- Use of joint return tax rates
- Highest standard deduction amount (if not itemizing)
This can result in a lower tax bill, which might mean a larger refund.
Common Questions About Deceased Tax Refunds
Can I file jointly with my deceased spouse?
Yes! The IRS considers you married for the entire year your spouse died, as long as you don’t remarry during that year. You can file using the “married filing jointly” status, which often results in lower taxes.
What if the deceased person didn’t file returns for previous years?
If your deceased family member didn’t file returns for years before their death, you or another representative may need to file those prior year returns as well.
What happens if taxes are owed instead of a refund?
If the final tax return shows that taxes are due rather than a refund, the person filing must submit payment with the return. If immediate payment isn’t possible, payment plans or installment agreements might be available.
Step-by-Step Guide to Handling a Deceased Person’s Tax Refund
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Gather necessary information
- Social Security number
- Date of death
- Income documents (W-2s, 1099s, etc.)
- Previous year’s tax return
-
Determine who will file the final return
- Court-appointed representative?
- Surviving spouse?
- Other responsible person?
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Prepare the final tax return
- Report all income up to the date of death
- Claim all eligible deductions and credits
- Mark “DECEASED” on paper returns
-
Complete additional forms
- Form 1310 (if required)
- Attach court appointment documents (if applicable)
-
File the return
- Electronically or by mail before the deadline
- Pay any taxes due or arrange for payment
-
Receive and handle the refund properly
- Deposit into an estate account if appropriate
- Use funds to pay outstanding debts first
- Distribute remaining funds according to will or state law
Managing Expectations: Timing and Processes
In my experience helping friends through this process, I’ve noticed that returns involving deceased taxpayers often take longer to process. The IRS may need additional time to verify the information and ensure the refund is issued correctly.
Be patient and keep copies of all documents submitted. If it’s been more than 8 weeks since filing and you haven’t received the refund, you can check the status using the “Where’s My Refund?” tool on the IRS website or call their refund hotline.
Important Considerations Beyond the Refund
While claiming a tax refund is important, don’t forget these other tax-related matters:
Estate Taxes
Depending on the size of the estate, you might also need to file an estate tax return (Form 706). This is separate from the individual income tax return and has different filing requirements.
State Tax Returns
Don’t forget that you’ll likely need to file a final state tax return as well. Each state has its own procedures for handling deceased taxpayers, so check with your state’s tax agency.
Inherited IRAs and Other Retirement Accounts
If the deceased had retirement accounts, special rules apply to beneficiaries. These can affect both the deceased’s final return and the tax situation of those who inherit the accounts.
Conclusion
Dealing with a deceased person’s tax refund isn’t a simple process, but understanding the steps can make it more manageable during a difficult time. Remember that the refund becomes part of the estate and must be handled appropriately by whoever claims it.
If you’re struggling with this process, consider consulting with a tax professional who specializes in estate matters. They can provide personalized guidance for your specific situation and help ensure everything is handled correctly.
Resources for Additional Help
- IRS Publication 559: Survivors, Executors, and Administrators
- IRS Tax Topic No. 356: Decedents
- Your state’s tax agency website
- Local tax preparation services that specialize in estate matters
Remember, while dealing with taxes might seem overwhelming after losing someone, taking it one step at a time can make the process more manageable. And don’t be afraid to ask for help when you need it!
File a current tax year return
Other resources:
- Publication 17, Your Federal Income Tax, adds to the information in the instructions for the tax form.
- Publication 559, Survivors, Executors, and Administrators, helps people who are in charge of someone else’s finances file their taxes.