Quick answer
Generally, a federal fiduciary income tax return (Form 1041) is required only if the estate had gross income of $600 or more during the tax year or if any beneficiary is a nonresident alien. If the estate produced no income and had no nonresident alien beneficiaries, you typically do not need to file Form 1041 even if you made no distributions. Separate federal estate tax rules (Form 706) apply only when the decedent’s gross estate plus certain taxable gifts exceeds the federal estate tax filing threshold. This article explains how those rules work and what an executor or personal representative should check.
Detailed answer — what to check and why
When someone dies, several distinct federal filing obligations can apply. The three most common are:
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Final individual income tax return (Form 1040): The decedent’s final Form 1040 must be filed for the part of the year up to the date of death if the decedent met the normal filing requirements (income thresholds, withholding, etc.). This is separate from any estate return. See the IRS guidance for filing a final return.
IRS: Final Individual Income Tax Return -
Fiduciary income tax return (Form 1041) for the estate or trust:
Federal Form 1041 (U.S. Income Tax Return for Estates and Trusts) is required when either:
- the estate’s gross income for the tax year is $600 or more, or
- any beneficiary is a nonresident alien.
If the estate produced no income (for example, no interest, dividends, rents, business income, or other gross income) and no beneficiary is a nonresident alien, you generally do not need to file Form 1041 even if you did not distribute assets. The rules focus on the estate’s income and the status of beneficiaries, not only on whether distributions were made.
Official IRS information and instructions for Form 1041 are here: About Form 1041 and the Form 1041 instructions (which state the $600 threshold and the nonresident alien beneficiary rule).
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Federal estate tax return (Form 706):
Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return) is a separate filing that is required only if the decedent’s gross estate plus certain adjusted taxable gifts exceeds the federal estate tax filing threshold (the exemption amount). If the gross estate is under that threshold, no Form 706 is required and no federal estate tax is due. Form 706 must generally be filed within nine months of the date of death (although a 6-month extension is available).
See the IRS Form 706 page for details: About Form 706.
Common scenarios (examples)
- No bank interest, no investment income, all accounts simply pass by beneficiary designation or joint ownership: Likely no Form 1041. Still file the decedent’s final Form 1040 if required. No Form 706 unless estate is large enough to meet the federal estate tax filing threshold.
- Estate received interest or dividends totaling $1,200 before distribution: The estate’s gross income exceeds $600 — Form 1041 is required even if you did not distribute the income to beneficiaries.
- Estate had income of $0 but one beneficiary is a nonresident alien: You must file Form 1041 and report the beneficiary information even though there was no income.
- Large estate with assets that exceed the federal exemption threshold: You may need to file Form 706 even if the estate produced little or no income during administration.
Deadlines and practical duties for the executor
- File the decedent’s final Form 1040 by the usual due date (typically April 15 following the year of death) unless an extension applies. See IRS guidance.
- If Form 1041 is required, the due date is generally the 15th day of the fourth month after the end of the estate’s tax year. For a calendar-year estate that means April 15 (see Form 1041 instructions).
- If Form 706 is required, it is generally due nine months after death; you can request a six‑month extension. See Form 706 guidance.
- Keep thorough records of asset values, account statements, amounts of income, fiduciary expenses, distributions (if any), and beneficiary information. These records determine whether returns are required and support tax positions taken.
Tennessee-specific notes
Tennessee does not impose a separate state estate tax (the state’s taxation landscape is different from other states). Executors in Tennessee should still confirm whether any state-level filings or local probate filings are required by consulting the Tennessee Department of Revenue and the probate court in the county where probate is opened. For general Tennessee tax information, see the Tennessee Department of Revenue: tn.gov/revenue.
When to get help from a tax professional or attorney
Consider professional help if any of the following apply:
- the estate generated more than $600 in gross income;
- any beneficiary is a nonresident alien;
- the gross estate might approach or exceed the federal estate tax filing threshold;
- the estate has complicated assets (business interests, real estate, foreign accounts, or retirement accounts); or
- you are unsure how to prepare Schedule K-1s or allocate income and deductions between the estate and beneficiaries.
Helpful hints
- Check every potential income source for the estate: bank interest, dividends, rents, business receipts, and any income earned after death. If total gross income is $600 or more, plan to file Form 1041.
- Even if you do not file Form 1041, keep records as if you did; future questions, audits, or beneficiary issues are easier to resolve with clean records.
- Remember the decedent’s final Form 1040 is a separate obligation from the estate’s Form 1041.
- If in doubt about whether the estate meets the federal filing threshold for Form 706, consult a CPA or an estate attorney quickly — Form 706 has a strict 9-month due date (extensions available for some circumstances).
- If beneficiaries include nonresident aliens, file Form 1041 and report correctly — penalties can be significant for failing to report nonresident beneficiaries.
- Use IRS resources: Form 1041, Form 706, and general guidance on estate and trust income tax: Estate and Trust Income Tax.