This column discusses whether a deceased person is required to file a tax return. The date of death is when a decedent’s tax year ends and there is usually an executor appointed to handle legal matters that include any tax issues facing the estate. The estate might also have to file for federal and possibly state estate taxes if it meets the estate tax threshold. The executor is going to want to get a federal identification for the estate and also open accounts to handle estate’s financial affairs. “The executor will file two returns that year, an individual Form 1040 for pre-death earnings and a Form 1041, which is a fiduciary or estate rerun for the income through the end of the calendar year.” The role of an executor carries with it many fiduciary responsibilities and those who are accepting the role need to be aware any tax filing requirements.
See Edward J. Loughrey, Tax filing for the deceased, Bluffton Today, February 3, 2016.
