File the final income tax return (and check estate tax)

Why it matters

A final federal (and usually state) income tax return is required for the year of death. Federal estate tax only affects very large estates, but a handful of states have their own.

How to do it

1. A final Form 1040 covers income up to the date of death (generally due the following tax season).
2. Federal estate tax applies only above a high exemption; some states levy their own estate or inheritance tax at lower thresholds.
3. A tax professional is worth it for anything beyond a simple return.

Do this first

• Order many certified copies of the death certificate