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Filing Taxes on an Estate: A Step-by-Step Guide for Executors

When a loved one passes away, you're often not just managing grief—you're managing paperwork, assets, and the IRS. If you've been named the executor or personal representative of an estate, one of your legal responsibilities may be filing estate tax returns and final income tax returns. This guide walks you through what you need to know—clearly and calmly.

Understand the Two Main Tax Responsibilities

As an executor, you're generally responsible for filing:

  • The Decedent’s Final Income Tax Return (Form 1040)

  • The Estate’s Income Tax Return (Form 1041), if applicable


Gather the Right Information


You'll need:

  • The decedent's Social Security Number

  • Any W-2s, 1099s, or brokerage account statements

  • Date of death values for all assets

  • Legal documents like the Will or Letters Testamentary

  • Employer Identification Number (EIN) for the estate (get from IRS.gov)


File the Final 1040 Income Tax Return

  • Covers income from Jan 1 of the year of death until the date of death

  • Usual due date: April 15 of the year following death

  • You may still claim deductions, credits, and refund options

  • If the decedent was married, you may file as Married Filing Jointly


Determine If You Need to File Form 1041

Form 1041 is required if the estate:

  • Earned $600 or more in gross income after the date of death

  • Has a non-resident alien beneficiary

This applies when assets in the estate continue to generate income (e.g., rental property, dividends, or interest) after the person has passed.


Report Distributions to Beneficiaries

  • If income from the estate is distributed to beneficiaries, it’s typically passed through and taxed on their returns.

  • The estate issues Schedule K-1 forms to each beneficiary, just like a business partnership would.


File State Estate and Inheritance Taxes

For Pennsylvania:

  • Inheritance Tax returns (REV‑1500) are required, even if no federal estate tax is due.

  • Rates range from 0% (for spouses) to 15% (for unrelated individuals).


Don’t Go It Alone – Consult a CPA

Tax filing for estates can be deceptively complex—especially when trusts, multiple beneficiaries, or out-of-state assets are involved. A qualified CPA:

  • Prevents missteps that lead to IRS penalties

  • Maximizes allowable deductions (e.g., legal fees, administrative costs)

  • Ensures compliance with both federal and state tax laws


At Lang, Faylor, Chomo & Co., we specialize in estate tax compliance and advisory. We take this burden off your plate—so you can focus on what matters most.


Serving as an executor is a serious fiduciary duty, but you don't have to figure it all out yourself. With a structured approach and the right guidance, estate tax filing can be handled efficiently and with peace of mind.


Need help with a final return or estate filing? Contact our CPA team today for a confidential consultation.

 
 
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