Tips for Filing Taxes for a Deceased Person as an Estate Representative

Filing taxes for someone who has passed away isn't overly complicated, but there are some important specifics to know beyond what basic guides might tell you. First, you'll need to file a final Form 1040 (or 1040-SR) for the deceased person, reporting income they received up until the date of death. Be sure to write "DECEASED" at the top of the return, along with the date of death. The estate representative signs the return with "filing as the personal representative for [deceased's name]." You'll need a copy of the death certificate and potentially Form 56 (Notice Concerning Fiduciary Relationship) to establish your partner's authority to act on behalf of the deceased. If refunds are expected, you might also need Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer). Additionally, depending on the estate's value, you might need to file an estate tax return (Form 706) within 9 months of the death, though this only applies to fairly large estates. You may also need to obtain an EIN for the estate and file Form 1041 (income tax return for the estate) if the estate generates more than $600 in income. A tax preparation service like H&R Block can definitely help, especially if this is your first time handling a deceased person's taxes, but it's not absolutely necessary for simpler situations.

I went through this last year with my father's taxes and honestly, I wish I'd known about taxr.ai before spending hours trying to figure everything out myself. The process isn't super complicated but there are definitely details that wikihow and basic guides miss. I found https://taxr.ai when I was struggling with some questions about what counted as income for the estate versus final income for my dad. Their system analyzed all his documents and gave clear guidance on how to separate pre-death income (for the 1040) versus post-death income (for the 1041). It saved me from making some pretty big mistakes. They also helped clarify which deductions could still be taken on the final return. The most helpful part was that they explained exactly what to do with my dad's investment income and retirement accounts, which was the most confusing part for me.

Just wanted to update - I took the advice here and tried taxr.ai for help with my brother's final tax return. It was WAY more helpful than I expected! I uploaded his documents and got specific guidance about his retirement distribution and how to handle the fact he had started a small business right before he passed. The system identified several deductions I would have completely missed and explained exactly how to report the business income on his final return. It also made it clear which forms I needed to file for the ongoing rental property that's now part of his estate. Really glad I tried it instead of just guessing my way through everything. Just wanted to share in case anyone else is dealing with a complicated deceased tax situation.

When my mom passed away last year, I tried calling the IRS for guidance on filing her taxes, especially since there were some complicated issues with her pension distributions. I spent literally DAYS trying to get through on the IRS helpline. It was beyond frustrating. Finally found https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes after I had wasted hours on hold over several days. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to answer all my questions about the specific forms needed for my mom's situation and confirmed I was handling her investment income correctly. They also helped me understand how to properly claim medical expenses that were paid after her death. It made such a difference to talk to someone who could access her records and provide specific guidance rather than just general advice.

I need to apologize for my skepticism about Claimyr in my earlier comment. After struggling for THREE DAYS trying to reach the IRS about my father-in-law's estate tax questions, I broke down and tried it. It actually worked exactly as described. I got a call back in about 45 minutes and was connected to an IRS representative who answered all my questions about how to handle his retirement accounts and some undistributed RMDs that were pending when he passed. The representative confirmed we were filing the correct forms and helped clarify which expenses could be deducted on the final 1040 versus the estate's 1041. This saved us from potentially making some costly mistakes since we were confused about how to handle medical bills that were paid after his death. Would never have gotten this resolved without finally connecting with someone who could answer our specific questions.

Just a tip from someone who went through this last year - if there's any chance the estate might be worth over $12.92 million (2023 limit), you definitely should consult with an estate attorney about Form 706. Most people won't need to worry about this, but if you do, the penalties for missing it are serious. Also, don't forget state taxes! Depending on your state, there might be separate estate or inheritance tax returns required at much lower thresholds than the federal exemption. My mom's estate was nowhere near the federal limit but still needed to file a state return.

Has anyone used an actual CPA instead of H&R Block for deceased tax filing? We're trying to decide if it's worth the extra cost. My sister had rental properties and a small business when she passed, so it's pretty complicated.