Inform the deceased's accountant or tax preparer to begin preparing final tax filings and to review any recent financial activity. If no CPA is known, locate recent tax documents to identify who last handled their returns.
Frequently Asked Questions
Process
Why should I notify the deceased's CPA or accountant early?
The accountant likely has copies of prior tax returns, knows the deceased's financial picture, and can advise on time-sensitive tax obligations. A final individual tax return (Form 1040) is due for the year of death, and the estate may need to file its own tax return (Form 1041) if it earns income during administration. Early notification gives the CPA time to plan and ensures critical deadlines are not missed.
Documents
What records should I provide to the accountant?
Gather and provide: the death certificate, Social Security number, prior year tax returns (if the CPA does not already have them), W-2s and 1099s received after death, bank and investment account statements, records of income earned between January 1 and the date of death, records of deductible expenses (medical bills, funeral costs), and information about any trusts, real estate, or business interests.
Legal
What are the tax return obligations after someone dies?
Three potential returns must be filed: (1) Final individual return (Form 1040) covering January 1 through date of death—due April 15 of the following year; (2) Estate income tax return (Form 1041) if the estate earns more than $600 in income during administration; (3) Estate tax return (Form 706) if the gross estate exceeds $13.61 million (2024 threshold)—due 9 months after death. A surviving spouse can file a joint return for the year of death.
Costs
What are the current estate tax thresholds?
The federal estate tax exemption is $13.61 million per individual for 2024 (indexed for inflation annually). Married couples can effectively shelter $27.22 million combined through portability. Only estates exceeding these thresholds owe federal estate tax (at rates of 18-40%). However, some states impose their own estate or inheritance taxes at much lower thresholds—for example, Oregon's threshold is $1 million and Massachusetts' is $2 million. Your CPA can advise on state-specific exposure.