What Happens to a Tax Refund When the Taxpayer Has Passed Away

When a family member passes away, handling their financial affairs can feel overwhelming. One common point of confusion is how to file their final tax return—and what happens to any refund owed to them. The IRS has specific procedures for this situation, and understanding them can ensure the refund is received smoothly by the rightful executor or beneficiary.

This guide walks you through the process step-by-step, including how to file the final return, how to legally claim the refund, and which documentation is required.

Who Files the Final Tax Return?

The final tax return for a deceased taxpayer is typically filed by:

• The surviving spouse (if filing jointly), or
• The executor or administrator of the estate

If there is no appointed executor, another responsible person filing the return can submit the claim.

The Form You Must File: Form 1310

If the deceased taxpayer is owed a refund and a surviving spouse is not claiming it on a joint return, then the person who is claiming the refund must file:

Form 1310 — Statement of Person Claiming Refund Due a Deceased Taxpayer

This form verifies:

• Your identity
• Your relationship to the deceased
• Your authority to claim the refund

Failure to include Form 1310 will delay the refund.

Required Documentation

When claiming the refund on behalf of a deceased taxpayer, you may need:

• A copy of the death certificate
• Letters of administration or court appointment (if applicable)
• Form 1310
• The final tax return

If the estate has a formally appointed executor, that documentation replaces the need for Form 1310.

Filing as a Surviving Spouse: An Exception

If you are the surviving spouse and file a joint return, you generally do not need Form 1310.

Example:

Your spouse passed away during 2025.
You file a Married Filing Jointly return for tax year 2025.
You receive the refund automatically.

However, if filing separately or if the spouse died in an earlier year, Form 1310 may still be required.

Tracking the Refund for a Deceased Taxpayer

Refund tracking follows the same process:

• You can use the IRS Where’s My Refund tool
  or
• The IRS Online Account transcript system

However, there may be additional manual review steps when the IRS sees:

• A deceased indicator
• Executor designation
• Claim certification
• Form 1310 processing

This may result in longer-than-usual refund timelines.

How Long Does It Take?

Typical timeline once the return is submitted:

• Standard e-file refund: 21 days (if no issues)
• Paper filed final return with Form 1310: 6–12 weeks
• Estate returns with formal administrator documents: 8–16 weeks

If additional verification is required, delays are normal.

Direct Deposit Rules for Deceased Taxpayer Refunds

Refunds can be:

• Deposited to the estate’s bank account
  or
• Mailed as a check payable to the estate or executor

Do not direct the refund to a personal account not legally associated with the estate.

This can cause:

• Rejections
• Returned funds
• Legal complications

Important Note: Fraud Prevention for Deceased Identities

Tax identity theft commonly targets deceased individuals because:

• Their SSNs remain valid
• Their personal information may become publicly accessible
• They may not have recent tax activity

The IRS flags returns for deceased taxpayers with additional scrutiny for this reason.

Best Practices for Executors

To ensure smooth refund processing:

• File electronically if possible
• Include Form 1310 when required
• Keep documentation organized
• Respond promptly to any IRS notices
• Be prepared for longer processing times

And most importantly:

Do not ignore the final return—it is legally required.

When a taxpayer passes away, the IRS does not keep their refund—but they require proper documentation to ensure it reaches the right hands. Using Form 1310 and filing the final return correctly prevents unnecessary delays and ensures the refund is issued to the rightful executor or surviving spouse.

Handled properly, the final refund becomes part of the estate and can help settle final expenses, debts, or distributions.