Taxes After a Death: What Has To Be Filed

Introduction

Tax filings are the part of settling an estate that families most often miss, because nobody sends you a letter telling you they are due. They are also the part the IRS treats as squarely part of the job — not an optional extra to get to eventually.

The good news is that the structure is simpler than it looks, and the frightening one — federal estate tax — almost certainly does not apply to you.

This is general information, not tax or legal advice. Amounts and thresholds change, and states have their own rules. Confirm anything with a dollar figure against the IRS directly, or ask a tax professional.

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10 Minute Version

There are two different income tax returns, for two different taxpayers: the person's final Form 1040, and the estate's Form 1041.
The final 1040 covers the year the person died — plus any earlier years they never filed.
Form 1041 covers income earned by estate assets after the death, and is required if the estate has gross income of $600 or more for the year (or has a nonresident-alien beneficiary, where no dollar threshold applies).
The estate is a separate taxpayer and needs its own EIN — not the person's Social Security number.
Federal estate tax (Form 706) affects almost no one: for 2026 deaths the gross estate must exceed $15 million.
Estate income tax and estate tax are different things with confusingly similar names. Most families deal with the first and never the second.

The two income tax returns

This is the distinction worth getting straight, because it explains nearly everything else.

The final Form 1040 or 1040-SR — the person's return. It covers income they earned while alive, in the year of death. If they had unfiled returns from earlier years, those are part of the job too. Normal filing thresholds apply, so a return is not always required.
Form 1041 — the estate's return. Once someone dies, their assets can keep earning: interest, dividends, rent, a sale. That income belongs to the estate, a new and separate taxpayer, and is reported on Form 1041.

The dividing line is the date of death. Income before it goes on the 1040; income earned by estate assets after it goes on the 1041.

When Form 1041 is required

For a domestic decedent's estate, a 1041 is required if any of these is true:

The estate has gross income of $600 or more for the tax year.
A beneficiary is a nonresident alien — in that case there is no dollar threshold at all.
The estate held a Qualified Opportunity Fund investment.

Two notes worth carrying with you. First, this is $600 or more, not "more than $600" — the phrasing "more than $600" circulates widely, and we found it even on an IRS plain-language page, but the statute and the form instructions both say $600 or more. At exactly $600, file.

Second, the duty falls on the "fiduciary," which is broader than "court-appointed executor." If you are the person in charge of the property, the filing duty can be yours even with no court appointment.

The estate needs its own EIN

The estate is a separate taxpaying entity, so it gets its own Employer Identification Number rather than using the deceased person's Social Security number. In practice you need it once there is something to file or a bank that asks — typically to open an estate account or to file the 1041.

It is worth saying what this is not: getting an EIN is not the mandatory first step after a death, despite how often it is presented that way. The first days belong to the death certificate and securing property. The EIN belongs to the moment you have an actual filing or banking need.

You may also need Form 56 to notify the IRS that a fiduciary relationship exists.

The one you can probably stop worrying about

Federal estate tax almost certainly does not apply

"Estate tax" causes a lot of unnecessary dread. It is gated by a threshold that excludes the overwhelming majority of families. A federal estate tax return (Form 706) is required only when the gross estate, plus adjusted taxable gifts and specific gift tax exemption, exceeds the filing threshold for the year of death:

2024 deaths: $13.61 million
2025 deaths: $13.99 million
2026 deaths: $15.00 million

If those numbers are nowhere near your situation, this form is not your problem. Note that the threshold keys to the year of death and changes annually — and that some states levy their own estate or inheritance taxes at far lower thresholds, so check your state separately.

You may also see older articles warning that the exemption was about to sunset to roughly $7 million. That narrative is now obsolete; disregard it.

Common Mistakes

Filing the final 1040 and assuming you are done. If estate assets earned income afterward, there may be a 1041 as well.
Using the deceased person's SSN for estate income. The estate needs its own EIN.
Distributing everything to beneficiaries before tax obligations are settled. This is where executors create genuine personal exposure — see What Does an Executor Do?
Missing prior unfiled years. They do not disappear at death.
Confusing estate income tax with estate tax. Similar names, very different things.
Assuming no court appointment means no tax duties. The IRS definition of who is responsible is broader than that.
Waiting for the IRS to tell you. No notice arrives to start the clock.

Last Reviewed

Last reviewed: July 16, 2026

This page is reviewed periodically. The federal estate tax threshold changes annually and keys to the year of death; the Form 1041 $600 threshold is set by statute and is not inflation-indexed. State tax rules are separate and not covered here. Always confirm current figures with the IRS.

Sources And Further Help

IRS Publication 559: survivors, executors, and administrators — the final return, the estate's return, and the duties of a personal representative.
IRS: filing an estate income tax return, the EIN requirement, and the Form 1041 threshold.
IRS: deceased person — hub for filings after a death.
IRS: estate tax and the filing threshold by year of death.
IRS: About Form 56, notice concerning fiduciary relationship.