Three potential tax filings
Most estates need the first, some need the second, very few need the third.
- Final Form 1040 (individual income tax). Covers income the decedent earned from January 1 through the date of death. Filed by the usual April 15 deadline of the year following death.
- Form 1041 (estate income tax). Covers income the estate itself earns after the date of death (interest, dividends, rental income, etc.) while the estate is being administered. Required if the estate earns $600+ in a year.
- Form 706 (federal estate tax). Only required for estates exceeding the federal exemption amount ($13.99 million per individual in 2026). If the decedent was married, portability elections may apply.
Filing the final 1040
Gather: W-2s and 1099s received in the decedent's name for the year of death, all tax-related documents for that year, and last year's tax return as a reference for deductions and carryovers.
Report income from January 1 through the date of death on the decedent's final 1040. Income received after the date of death goes on the estate's Form 1041 instead.
Write "Deceased," the decedent's name, and the date of death across the top of the final return. Sign as "[Your name], Executor."
If the decedent was married, the surviving spouse can file a joint return for the year of death and include the decedent's final income on that return.
Getting a tax ID for the estate
The estate is a separate taxpayer from the decedent. Apply for an Employer Identification Number (EIN) for the estate at the IRS website (apply.irs.gov) — it's free and takes about 5 minutes. Use this EIN for the estate bank account and Form 1041.
State estate and inheritance taxes
The federal estate tax has a high exemption, so most estates don't owe it. State taxes are a different matter:
- Estate tax states (2026): CT, DC, HI, IL, MA, MD, ME, MN, NY, OR, RI, VT, WA. Exemptions range from $1M (Oregon, Massachusetts) to over $13M (matches federal in some).
- Inheritance tax states: IA, KY, MD, NE, NJ, PA. These tax the heir based on their relationship to the decedent, with rates varying by class of heir.
- Maryland is the only state with both estate tax and inheritance tax.