Final & Estate Tax Returns After a Death | Honorly
PROBATE, DEBTS & TAXES

Final & Estate Tax Returns After a Death

Updated September 2026

A death usually triggers at least one final tax return, and sometimes an estate return too. Most estates owe no federal estate tax, but the filings still have to be handled correctly and on time. This guide covers what's required and how it fits together.

Let us handle it. Talk to our team
QUICK ANSWER

You may need to file a final individual income tax return for the person who died and a separate estate income tax return if the estate meets IRS filing requirements. The estate will generally need its own EIN from the IRS, including when opening an estate bank account. Federal estate tax generally applies only to larger estates, although a federal estate tax return may be filed for other reasons. Some states also impose their own estate or inheritance taxes.

AT A GLANCE
Who can handle it The executor or administrator, working with a CPA or tax preparer
Documents you may need The estate's EIN, prior tax returns, income records, and asset valuations
Does it relate to probate? Separate from probate, but usually handled at the same time
What has to be filed A final individual return, an estate income return if the estate earns income, and any state estate or inheritance tax
WHAT'S INVOLVED

How do you handle taxes after someone dies?

A NOTE ON WHAT HONORLY DOES AND DOESN'T DO

Honorly does not give tax advice or prepare returns. We support obtaining the estate's EIN, organize the records, track the deadlines, and coordinate directly with your CPA so the filings happen on time and nothing is missed.

  1. 01
    Get an EIN for the estate
    The estate is a separate taxpayer and needs its own Employer Identification Number, which is free from the IRS. See our step-by-step guide to getting an EIN for an estate.
  2. 02
    Gather the tax records
    Collect prior-year returns, income documents (W-2s, 1099s), and records of estate income and expenses.
  3. 03
    File the final individual return
    If a return is required, the final Form 1040 reports the person's income through the date of death and is generally due on the normal filing schedule the following year.
  4. 04
    File an estate income tax return if needed
    A domestic estate generally files Form 1041 if it has $600 or more in gross income for the tax year, such as interest, dividends, or rental income. Income and gains from assets sold by the estate may also need to be reported.
  5. 05
    Assess estate and inheritance tax
    Federal estate tax applies only to very large estates. Some states impose their own estate or inheritance tax with lower thresholds — for example, Illinois estate tax. Rules vary by state.
  6. 06
    Coordinate with a CPA
    A tax professional should prepare and review the returns; we keep the documents, deadlines, and information flowing to them.
COMMON QUESTIONS

Frequently asked questions about tax returns

Why does the estate need an EIN?

After death, the person's Social Security number can't be used for new financial activity, so the estate gets its own tax ID to open an estate account and file returns. Here's how to get one.

What's the difference between estate tax and inheritance tax?

Estate tax is paid by the estate before distribution; inheritance tax is paid by the people who receive assets, and only a handful of states have it. Both vary by state.

About Honorly

Let us handle it.

Honorly is an estate settlement service that handles the administrative, financial, and legal tasks that follow a loved one's passing, so families aren't left to figure everything out alone.

We handle the calls, paperwork, and follow-ups that come after a loss, so your family can focus on each other.

Talk to our team