Handling Refunds for Deceased Taxpayers: Steps for Executors

Quick overview

When a taxpayer dies, an overpayment may remain on the record that can belong to the surviving spouse or to the estate. The executor’s role is to identify those refunds, file the appropriate final returns, supply required proof of authority and death, and choose a payment method that protects estate assets. This article walks through step-by-step actions, documentation, timelines, and common pitfalls.

Who can claim a deceased taxpayer’s refund?

• Surviving spouse: If a joint return is filed for the year of death, the surviving spouse can generally claim the refund without Form 1310 when properly documented on the joint return (see IRS guidance below).
• Executor or administrator: If the return is in the deceased’s name only, or the refund is payable to the decedent, the executor (personal representative) should claim the refund for the estate, typically using Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) and attaching required estate documents.
• Others (rare): If no executor exists, a surviving family member may claim a refund, but the IRS will require proof of entitlement (letters of administration, small estate procedures, or Form 1310).

(Author note: In my practice I’ve seen most delays arise from missing letters testamentary or from relying on direct deposit to an account the bank has frozen. Order certified death certificates and obtain letters quickly.)

Step-by-step checklist for executors

1. Obtain certified death certificates — order at least 6–12 copies.
2. Collect the taxpayer’s tax records — W-2s, 1099s, prior year returns, receipts, and proof of estimated tax payments.
3. Decide who should file the final return — the executor or, if applicable, the surviving spouse (see the IRS rules for joint returns).
4. Prepare and file the final Form 1040 (or Form 1040-SR) for the year of death covering income from January 1 through the date of death.
5. Determine whether the refund belongs to the surviving spouse or the estate.
6. If claiming the refund for the estate or as a person other than the surviving spouse, complete Form 1310 and attach proof of death and proof of authority (copy of will, letters testamentary, or letters of administration).
7. Consider establishing an estate bank account (EIN) before depositing a refund check payable to the estate.
8. Track processing and respond quickly to IRS requests for additional documentation.

Required forms and documents

• Final Form 1040 or Form 1040-SR for the year of death (file electronically when possible).
• Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer (when required). See Form 1310 and instructions on IRS.gov (IRS) for when submission is necessary.
• Certified copy of the death certificate.
• Letters testamentary or letters of administration (issued by the probate court) to show authority to act for the estate.
• Social Security number for the decedent and executor, prior returns, and proof of tax payments.
• If using an estate bank account, the estate’s EIN (apply using Form SS-4).

IRS references: Deceased Taxpayers and Form 1310 pages are primary sources (see IRS, “Deceased Taxpayers” and “About Form 1310”). For broader executor guidance, see Publication 559 (Survivors, Executors, and Administrators). Links: https://www.irs.gov/individuals/deceased-taxpayers, https://www.irs.gov/forms-pubs/about-form-1310, https://www.irs.gov/publications/p559.

When is Form 1310 required (practical guidance)

• File Form 1310 when you are claiming a refund on behalf of a deceased taxpayer and you are not the surviving spouse filing a joint return that already claims the refund.
• If you are an executor with letters testamentary, attach a copy of those letters (or other proof of appointment) instead of Form 1310 in many cases — the IRS accepts court documentation showing you are the personal representative.

Note: IRS procedures vary by office. When in doubt, include Form 1310 plus the court-issued documents and a death certificate to minimize follow-up requests. (Practical tip from my experience: attaching clear probate documents up front typically reduces IRS processing time.)

Choosing payment method and protecting estate funds

• Direct deposit: The IRS generally requires accurate bank account information and will only deposit to an account that can accept the funds. If the account is joint with the surviving spouse, direct deposit can be the quickest option. If the account is solely in the decedent’s name, many banks will freeze it after death, preventing access.
• Estate account: Best practice is to open an estate checking account using the estate EIN and deposit any refund checks payable to the estate there. Banks typically require letters testamentary or letters of administration and an EIN.
• Refund checks payable to the deceased: If the IRS issues a check in the decedent’s name, the executor can cash or deposit it to the estate account once the bank accepts proof of authority.

Timelines — what to expect

• Electronic returns for living taxpayers often process within ~21 days. For deceased taxpayers, especially when Form 1310 or probate documents are required, expect longer processing — commonly 6–12 weeks or more if mailed documents are involved.
• If you are claiming an older-year refund, remember the statute of limitations: generally you must file a claim within three years from the original return due date or within two years from the date the tax was paid, whichever is later. See IRS Publication 559 for details.

Common pitfalls and how to avoid them

• Missing or late final returns: File the final return promptly. Missed filing can forfeit refund claims under normal limitation periods.
• Relying on closed bank accounts for direct deposit: Confirm account status with the bank before selecting direct deposit. If unsure, request a check payable to the estate and deposit it into the estate account.
• Failing to provide proper proof of authority: Banks and the IRS commonly require certified copies of letters testamentary or administration. Submit these with Form 1310 where applicable.
• Overlooking state refunds: States have their own refund rules and timelines. Don’t assume the state will follow federal procedures; check the state tax authority’s guidance.

Real-world examples (anonymized)

• Case A: An executor located three certified death certificates and the letters testamentary before filing. The estate filed the final Form 1040 and included a copy of the letters; the IRS issued a check to the estate within eight weeks.
• Case B: A surviving spouse expected an e-file refund to a bank account that the decedent used alone. The bank froze the account when notified of the death, delaying access. We resolved this by requesting a paper check and opening an estate account to house the funds temporarily.

When to consult professionals

• Complex estates: If there are significant unpaid taxes, estate tax questions, or disputes among heirs, consult a CPA or estate attorney.
• Cross-border issues: If the decedent had foreign income or foreign accounts, specialized tax help is strongly recommended.
• Unclaimed or misdirected refunds: If a refund check was sent to a closed or old account, see our guide to recovering refunds sent to an old account for practical next steps.

Useful internal resources

• For detailed filing steps and executor responsibilities, see our guide to filing final returns: “Tax Planning for Executors: Filing the Final Returns.” (link: https://finhelp.io/glossary/tax-planning-for-executors-filing-the-final-returns/)
• If a refund was sent to an old bank account or the decedent, read: “Recovering a Refund That Was Sent to an Old Bank Account or Deceased Taxpayer.” (link: https://finhelp.io/glossary/recovering-a-refund-that-was-sent-to-an-old-bank-account-or-deceased-taxpayer/)

Frequently asked questions
Q: Can a surviving spouse claim a refund without filing as executor?
A: Yes. If a joint return is filed for the year of death, the surviving spouse typically claims the refund on the joint return. If the refund is due only to the deceased’s separate return or requires probate documentation, the executor must claim it.

Q: What if the IRS sends the refund before probate is opened?
A: If the refund is paid directly to the deceased, you may need to have the bank accept deposit into an estate account or negotiate the check with proof of authority. Obtaining letters testamentary expedites the process.

Q: How long does the executor have to file a claim for an older-year refund?
A: Generally three years from the original return due date or two years from payment — whichever is later. Verify specific deadlines in IRS Publication 559.

Professional disclaimer
This article is educational and does not replace personalized tax or legal advice. Rules and IRS procedures can change; consult the IRS website or a qualified tax professional or estate attorney for guidance tailored to a specific situation.

Author’s note
In more than 15 years working with estates, I’ve seen timely documentation and clear communication with banks and the IRS prevent most delays. Treat refunds to a deceased taxpayer as part of estate asset protection: act promptly, collect documentation, and, when necessary, get professional help.