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After someone with a filing requirement passes away, their surviving spouse or representative should file the deceased person's final tax return. On the final tax return, the surviving spouse or representative should note that the person has died. The IRS doesn't need a copy of the death certificate or other proof of death.

Usually, the representative filing the final tax return is named in the person's will or appointed by a court. Sometimes when there isn't a surviving spouse or appointed representative, a personal representative will file the final return and attach Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer.

Things to know about filing the final tax return

Generally, the final individual income tax return of a deceased person is prepared and filed the same way as if the person were alive.

• The return must report all income up to the date of death and claim all eligible credits and deductions.
• If the deceased person did not file individual income tax returns for the years before their death, their surviving spouse or representative may have to file prior year returns.
• The IRS considers the surviving spouse married for the full year their spouse died if they don't remarry during that year.
• The surviving spouse is eligible to use filing status "married filing jointly" or "married filing separately."
• The same tax deadlines apply for final returns. If, for example, the deceased person died in 2022, their final return is due by April 18, 2023, unless the surviving spouse or representative has an extension to file.
• When e-filing, the surviving spouse or representative should follow the directions provided by the tax software for the correct signature and notation requirements.
• For paper returns, the filer should write "deceased," the person's name and the date of death across the top.

Who should sign the tax return

Here's who should sign the tax return:

• Any appointed representative must sign the return. If it's a joint return, the surviving spouse must also sign it.
• If there isn't an appointed representative, the surviving spouse filing a joint return should sign the return and write in the signature area, "filing as surviving spouse."
• If there's no appointed representative and no surviving spouse, the person in charge of the deceased person's property must file and sign the return as "personal representative."

Other documents to include with the final tax return

Court-appointed representatives should attach a copy of the court document showing their appointment. Representatives who aren't court-appointed must include Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer to claim any refund. Surviving spouses and court-appointed representatives don't need to complete this form.

If tax is due, the filer should submit payment with the return or visit the payments page of IRS.gov for other payment options. If they can't pay the amount due immediately, they may qualify for a payment plan or installment agreement.

Qualifying widow or widower

Surviving spouses with dependent children may be able to file as a Qualifying Surviving Spouse for two years after their spouse's death. This filing status allows them to use joint return tax rates and the highest standard deduction amount if they don't itemize deductions.

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When a tax return has errors, like typos or math mistakes, it can lead to longer processing times and frustration for taxpayers. Many common errors are easy to avoid by carefully reviewing the tax return.

Before filing their tax return, taxpayers should review their return for a few common issues

Incorrect filing status

If taxpayers are unsure about their filing status, the Interactive Tax Assistant on IRS.gov can help them choose the correct status, especially if more than one filing status applies. Tax software, including IRS Free File, also helps prevent mistakes when selecting a tax return filing status.

Errors in names, birth dates and Social Security numbers

Taxpayers must correctly list the name, date of birth and Social Security number for each person they claim as a dependent on their individual income tax return. They should enter each SSN and name on a tax return exactly as it's printed on the Social Security card.

If a dependent or spouse does not have a Social Security number and isn't eligible to get one, taxpayers can apply for an Individual Tax Identification Number and list that instead.

Not answering the digital assets question

Forms 1040 and 1040-SR for tax year 2022 ask whether, at any time during 2022, the taxpayer received, sold, exchanged, gifted or otherwise disposed of a digital asset or financial interest in any digital asset. Taxpayers must complete this field by checking either "Yes" or "No."

Incorrect routing and account numbers

Taxpayers can request direct deposit of a federal refund into one, two or even three accounts. They should make sure the financial institution routing and account numbers entered on the return are correct. Incorrect numbers can delay a refund or deposit it into the wrong account. Taxpayers should also make sure the name on the account matches the name on the tax return.

Taxpayers can also use their refund to purchase U.S. Savings Bonds.

Not signing and dating the return

If filing a joint return, both spouses must sign and date the return. When taxpayers are self-preparing their taxes and filing electronically, they must sign and validate their electronic tax return by entering their prior year's adjusted gross income (AGI). Taxpayers can review Validating Your Electronically Filed Tax Return if they have questions.

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All taxpayers filing 2022 tax year Forms 1040 and 1040-SR must check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer.

Examples of digital assets transactions include:

• A sale of digital assets.
• The receipt of digital assets as payment for goods or services provided.
• The receipt or transfer of digital assets for free, without providing any consideration, that does not qualify as a bona fide gift.
• The receipt of new digital assets as a result of mining and staking activities.
• The receipt of new digital assets as a result of a hard fork.
• An exchange of digital assets for property, goods or services.
• An exchange or trade of digital assets for another digital asset(s).
• Any other disposition of a financial interest in digital assets.

Reporting digital assets transactions

• If the "yes" box is checked, taxpayers must report all income related to their digital asset transactions.
  
• Taxpayers should use Form 8949, Sales and other Dispositions of Capital Assets, to figure their capital gain or loss and report it on Schedule D (Form 1040), Capital Gains and Losses.
  
• If the transaction was a gift, they must file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
  
• If individuals received any digital assets as compensation for services or disposed of any digital assets they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type. For example, they would report W-2 wages on Form 1040 or 1040-SR, line 1a, or inventory or services on Schedule C.

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It's important for taxpayers to file a federal tax return that has a complete and correct reporting of their income – which may mean including income from sources other than regular wages from an employer. Income from gig economy activities and tip income are two common sources of such income.

Gig economy earnings are taxable

The gig economy is activity where people earn income providing on-demand work, services or goods, such as selling goods online, driving a car for deliveries or renting out property. This income is often received through a digital platform like an app or website.

Taxpayers must report income earned from the gig economy on a tax return, even if the income is:

• From part-time, temporary or side work.
• Paid in any form, including cash, property, goods or digital assets
• Not reported on an information return form like a Form 1099-K, 1099-MISC, W-2 or other income statement.

For more information taxpayers should visit the gig economy tax center page of IRS.gov.

Reporting service industry tips

People who work in restaurants, salons, hotels and similar service industries often receive tips for the customer service they provide. Tips are generally taxable income, and it's important for people working in these areas who regularly receive tips to understand the requirements on reporting tips.

Tips are optional cash or noncash payments customers make to employees.

• Cash tips include those received directly from customers, electronically paid tips distributed to the employee by their employer and tips received from other employees under any tip-sharing arrangement. All cash tips must be reported to the employer, who must include them on the employee's Form W-2, Wage and Tax Statement.

• Noncash tips are those of value received in any medium other than cash, such as: tickets, passes or other goods or commodities a customer gives the employee. Employees don't report noncash tips to their employer, but they must report the value of them on a tax return.

• Any cash tips the employee didn't report to the employer must be reported separately on Form 4137, Social Security and Medicare Tax on Unreported Tip Income, to include as additional wages with their tax return. The employee must also pay the employee share of Social Security and Medicare tax owed on those tips.

Employees don't have to report tip amounts of less than $20 per month per employer. For larger amounts, employees must report tips to the employer by the 10th of the month following the month they received the tips.

The employee can use Form 4070, Employee's Report of Tips to Employer, available in Publication 1244, Employee's Daily Record of Tips and Report to Employer, or they can use an employer-provided form or other electronic system used by their employer.

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Once people complete and file their tax return, many of them eagerly await any refund they may be owed. No matter how a taxpayer plans to use their tax refund, knowing fact from fiction can help manage expectations as they wait for their money. This tip dispels some federal tax refund myths that many people believe are fact, but they are pure fiction.

Myth: Calling the IRS, a tax software provider or a tax professional will provide a more accurate refund date

Many people think talking to the IRS or to their tax software provider or tax professional is the best way to find out when they will get their refund. The best way to check the status of a refund is through the Where's My Refund? tool or the IRS2Go app.

Taxpayers can also call the automated refund hotline at 800-829-1954 to get their refund status. This hotline has the same information as Where's My Refund? There is no need to call the IRS unless "Where's My Refund?" says to do so.

Myth: Where's My Refund? must be wrong because there's no deposit date yet

Updates to Where's My Refund" ‎and to the IRS2Go mobile app are made once a day, usually overnight. Even though the IRS issues most refunds within 21 days, it's possible a refund may take longer. If the IRS needs more information to process a tax return, the agency will contact the taxpayer by mail. Taxpayers should also consider the time it takes for the banks to post the refund to the taxpayer's account. People waiting for a refund in the mail should plan for extra time.

Myth: Where's My Refund? must be wrong because the refund amount is less than expected

There are several factors that could cause a tax refund to be less than expected. The IRS will mail the taxpayer a letter of explanation if it makes adjustments. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations. Before calling, taxpayers should check the Where's My Refund? tool or wait for the letter to understand why the change occurred. This can help taxpayers know how to respond.

Myth: Getting a refund this year means there's no need to adjust withholding for tax year 2023

To avoid a surprise next year, taxpayers should make changes now. One way to do this is to adjust their tax withholding with their employer. The Tax Withholding Estimator tool can help taxpayers determine if their employer is withholding the right amount.

Taxpayers who experience a life event such as marriage, divorce, or the birth or adoption of a child, or are no longer able to claim a person as a dependent, are encouraged to check their withholding. Taxpayers can use the results from the Tax Withholding Estimator to complete a new Form W-4, Employee's Withholding Certificate, and submit it to their employer as soon as possible. Withholding takes place throughout the year, so it's better to take this step as soon as possible.

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