Decedent's final return
From Wikicpa
A taxpayer's tax year ended on the date of his or her death. The final return of a decedent for the part of the year up to and including the date of death is filed on Form 1040, 1040A or 1040EZ.
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Details
A final return must be filed if the decedent met the 2005 gross income filing amounts summerized below and a return must also be filed for the decedent if earnings from self employment activities amounted to $400 or more. Or if the decedent is owed a refund.
| Filing Status | Amount |
|---|---|
| Single Individual | $8,200 |
| Single Individual, 65 or older | $9,450 |
| Married individual, septarate return | $3,200 |
| Married couple, joint return | $16,400 |
| Head of household | $10,500 |
| Head of household, 65 or older | $11,750 |
The final return of the decedent may be filed as a separate return or a joint return. All exemptions normally allowed the decedent may be claimed on this return. The due date of the final return is the same date the return would have been due had the death not occurred which is normally April 15 of the year following the tax year. If the April 15th due date falls on a Saturday or Sunday (as is did in 2006), the following Monday (April 17 for 2006) becomes the actual due date.
Income
Most individuals are cash-basis taxpayers, meaning that they income becomes taxable to them when actually earned or constructively received. If part of the dededent's income was on the accrual basis, then income accrued up to the date of death is included in the final return.
Deductions
Deductions that otherwise would have been taken of the decedents return had death not occurred can still be deducted on their final return. Deductions for medical care paid by his or her estate within 12 months from the date of death are deductible on the decedent's final return. However, the estate must attachment a waiver statement to the decedent's return and the estate's return.
