When someone passes away, there are several tax matters a surviving family member or personal representative may need to handle. A recent tax tip shared some of the key steps to help with that process.

One of those steps is filing the deceased person's final federal income tax return. Here’s a closer look at what to know when preparing and filing that return.

Who files the final return?
The personal representative of the estate is responsible for filing the deceased person’s final individual tax return. This can be an executor, administrator, or anyone else in charge of the decedent's property. In some cases, Form 56, Notice Concerning Fiduciary Relationship must completed so the IRS knows the representative has the authority to act as the taxpayer.

What does the final individual return include?
In general, the final individual income tax return is prepared and filed the same way it would if the person were alive. In most cases, all income up to the date of death should be reported. The representative can also claim any credits and deductions the deceased taxpayer was eligible for prior to their passing.

Who signs the final return?
Who signs the final return depends on the situation. The IRS Interactive Tax Assistant, can also help with the determination.

• If there's an appointed personal representative, that person must sign the return. If it's a joint return, the surviving spouse must also sign it.
• If a surviving spouse files a joint return and there's no appointed personal representative, the spouse should sign the return and write in the signature area "Filing as surviving spouse." A surviving spouse can file joint returns for the taxable year in which the death occurred and, if the death occurred before filing the return, for the taxable year immediately before the year of death.
• If there's no appointed personal representative and there's no surviving spouse, the person in charge of the decedent's property must file and sign the return as "personal representative."

Pay any taxes owed
If the deceased person owes any taxes for the year they passed or prior years, the person responsible for filing should submit payment with the return or see more options at paying your taxes.

Claim a refund
If there’s a refund due, the representative may claim it by submitting Form 1310, Statement of a Person Claiming Refund Due a Deceased Taxpayer.

More information
File the final income tax returns of a deceased person
Topic no. 356, Decedents
Publication 559, Survivors, Executors and Administrators