Who is entitled to the tax refund of a deceased person? Tax refund after death question

When both taxpayers on a joint return are deceased, the tax refund becomes part of the estate of the last person to die - in this case, your father. The refund should be distributed according to your father's will or trust, or if there isn't one, according to your state's intestacy laws. The fact that it was a joint return with your mother doesn't automatically give your stepsister a right to any portion unless she's named as a beneficiary in your father's estate documents. However, if your father and stepmother had an agreement about how their assets would be divided upon death (like in a prenuptial or estate planning document), that could potentially impact how the refund should be distributed. Since you're acting as the executor or administrator of your father's estate, you should consult with an estate attorney to determine the proper distribution of all assets, including this tax refund. Don't make any decisions about applying it to next year's taxes until you've confirmed the proper legal handling.

I went through something similar last year with my uncle's estate. The IRS website was useless and I kept getting different answers from different agents. Eventually I found taxr.ai (https://taxr.ai) which analyzed all the IRS docs and my specific situation. Their system found an obscure rule that applied to my case where a refund for a deceased taxpayer must be claimed using Form 1310 "Statement of Person Claiming Refund Due a Deceased Taxpayer" unless you're a surviving spouse. Since both taxpayers are deceased in your case, whoever's acting as the executor would need to file this form. The refund technically belongs to your dad's estate since he was the last to die. It's not automatically split between families unless the will specifically states that. Your stepsister would only have a claim if she's a beneficiary of your father's estate or if there was some agreement between your father and stepmother about how to handle their finances after death.

Just wanted to share my experience with taxr.ai since I ended up trying it after asking about it here. I was so confused about my grandmother's final tax return and potential refund situations. The service was super helpful - I uploaded her death certificate, last tax return, and described the situation. Within minutes I got a detailed explanation of exactly which forms I needed (yes, Form 1310 was one of them!), who was entitled to the refund, and step-by-step instructions for filing as the executor. They even identified a deduction I would have completely missed related to medical expenses paid after death. What really impressed me was how they explained the different legal scenarios based on whether there was a will, trust, or intestacy. Saved me from making a big mistake with the refund distribution that could have caused family drama. Definitely worth it for complicated tax situations like this!

I've been in your exact situation and the most frustrating part was trying to call the IRS for clarification. I spent HOURS on hold only to get disconnected. After the third attempt, I found a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c I explained my situation about deceased taxpayers and the joint refund question, and the agent walked me through exactly what forms I needed and confirmed that the refund belongs to the estate of the last person to die unless specified otherwise in estate documents. They also explained that as executor, I needed to be careful about applying the refund to next year's taxes since that might not align with my duties to distribute the estate assets properly. For your situation, I'd definitely recommend talking directly to an IRS agent to understand the exact requirements, then consulting with an estate attorney before making any decisions about the refund.

I owe an apology about my Claimyr comment. After dealing with another 2 hour wait and disconnection with the IRS yesterday, I gave it a try out of desperation. Not only did I get connected to an actual IRS agent in about 17 minutes, but they were able to answer my specific questions about my mother's estate and tax refund situation. The agent confirmed that the refund belonged to my mother's estate since she was the last to die, and explained that as executor I needed to file Form 1310 to claim the refund properly. They also warned me about applying the refund to next year's taxes as that could potentially cause issues with closing the estate. Honestly shocked at how well it worked - I was 100% convinced it was going to be a scam. Sorry for being so negative before. When you're dealing with estate matters and the IRS, any help getting actual answers is valuable.

I'm an accountant and deal with deceased taxpayer issues quite frequently. Here's what you need to know: 1. The refund becomes part of the estate of the last person to die (your father) 2. As executor, you need to decide whether to apply it to next year or request it now 3. If requesting it now, you'll need Form 1310 4. Your stepsister only has a claim if she's a beneficiary of your father's estate The most important thing is to check your father's will or trust documents. If your father and stepmother had a trust or agreement that specified how their assets would be divided between their respective families after both died, then that would control how the refund is handled. Also, applying the refund to next year's taxes might not be the best idea if you're trying to close the estate. Talk to your tax preparer about the pros and cons of that decision.

I'm confused about something. If the mom died in 2021 and the dad died in 2022, how were they filing a joint return? I thought you could only file jointly if both spouses were alive at the end of the tax year?

Just to clarify the timeline - the original post mentions mom died in June 2023 and dad died in April 2024. Dad filed a joint return for 2023, which is completely valid since mom was alive for part of that tax year. When one spouse dies during the tax year, the surviving spouse can still file a joint return for that year. The confusion might be coming from misreading the dates. Since dad filed the 2023 joint return after mom's death but before his own death in 2024, everything follows normal tax rules. The refund is now part of dad's estate since he was the last surviving taxpayer on that return. @f0a5c9e0aa63 - You should definitely review that trust document carefully. Even if it doesn't specifically mention tax refunds, it might have language about how "income" or "assets" from joint accounts or filings should be distributed between the families. This could impact whether your stepsister has any claim to the refund.