We would like to bring to your attention a subject that most people prefer not to think about.

When a taxpayer dies, the spouse or the legally appointed personal representative (fiduciary) is responsible for filing the federal tax return. The fiduciary may also be responsible for filing tax returns for previous years that have not yet been filed, as well as a tax return for the decedent's estate. If no person is legally appointed as the fiduciary, then the person handling the disposition of the decedent's property is responsible for filing the tax return for the deceased taxpayer and is considered to be the personal representative.

When determining the income and taxes due for a person who passed away, the date of death is quite important. All income earned before that date for the year goes on the personal tax return. All income earned after death is the responsibility of the estate and will be reported on the estate tax return.

On the other hand, regardless of the time of the year when the event occurs, the spouse or personal representative can claim the full deduction for the year and any other expenses that occur prior to death.

There are several tax returns that may be required to be filled by a deceased person’s representative.

The individual tax return (Form 1040), or the terminal tax return, has to be filed by the personal representative with the specification that the subject is deceased, also including the date of death. This return must be filed the later of April 30th of the following year or six months following the date of death.

If the decedent was married during the year prior to their death, the spouse may be able to file a joint return with their late spouse. Under IRS rules, they may file the return jointly if they did not remarry the year of their spouse's death, have a dependent child, and provided over half of the household income for the primary residence of the dependent child. The surviving spouse and the decedent must have otherwise qualified to file a joint return for that tax period.

Form 1310 is used to match the taxpayer claiming the refund with the deceased. It also provides information on whether a will was left. Form 1310 also states who is claiming the refund, has the right to do so and absolves the IRS of any involvement in subsequent disputes.

States have different rules regarding the pay out of the refund. By submitting the form, the taxpayer agrees to abide by the applicable state law.

If there are wages and earnings made by the deceased after death, those wages or payments should not be included on the decedent’s tax return, they need to be reported on Form 1041 for estates and trusts, if they are over $600.

When a person passes away, an executor or trustee is in charge of their estate. The exact designation depends on what type of estate planning they did. Nonetheless, this person will sign the tax return and note the person is deceased.

The advantage of a rights or things return is that it is a separate return in which the taxpayer is entitled to a personal exemption and the marginal tax rates apply as if it were a regular tax return.

Property that is received through inheritance is not taxable unless it earns some sort of income, such as rental properties where the recipient would receive monthly payments. Likewise, payments received through veterans' insurance are not taxed. Life insurance benefits are also not taxable, including life insurance payments made in installments and some accelerated death benefits paid to terminally ill persons and their beneficiaries.

Of course, professional help is always the best option to make sure everything connected with the deceased is taken care of according to the law.