When a person dies, it may be necessary to file an income tax return for the decedent's last year.  This article explains when that is necessary and how to do it.

That tax return is separate and apart from the possible need to file an estate tax return and for the estate to file its own income tax return.  The estate tax return only needs to be filed if the value of the estate – the net total of all assets - exceeds a certain amount.  That amount is subject to change and may be found in the instructions and publications updated by the Internal Revenue Service (IRS)  from time to time.  In such cases, a Form 706, United States Estate Tax Return, is required.  Additionally, the estate itself may have to file an income tax return using Form 1041, U.S. Income Tax Return for Estates and Trusts.  IRS Publication 950, Introduction to Estate and Gift Taxes, provides guidance and instructions on how to handle the income taxes of an estate.  The focus here is only on the final U.S. Individual Income Tax Return.  Look elsewhere for guidance on estate taxes and income taxes for estates.