When a person dies, the person’s estate is responsible for filing:
- an income tax return for the months of the tax year the person was living and receiving income—from January of the tax year to the date of death.
File Form IN-111, Vermont Income Tax Return
- a fiduciary return on behalf of the deceased person for the months of the tax year the estate earned income, such as rental income or an Investment Retirement Account (IRA) cashed in during administration of the estate.
File Form FIT-161, Fiduciary Return of Income and Instructions
- an estate tax return on the transfer of a Vermont estate of resident and nonresident deceased persons.
File Form E-1, Estate Tax Return if death occurs on or before Dec. 31, 2015
File Form EST-191 and Instructions if death occurs on or after Jan. 1, 2016
- to obtain a six-month extension to file the Estate Tax Return, file Form ES-164, Application for Extension of Time to File Vermont Estate Tax Return on or before the due date of the Estate Tax Return.
Filing a Vermont Income Tax Return
Who Needs to File a Vermont Income Tax Return?
If a deceased taxpayer received Vermont income between the beginning of the taxable year and the date of death and is required to file a federal income tax return, a Form IN-111, Vermont Income Tax Return, also must be filed on the behalf of the deceased taxpayer. The return, reflecting income received from January until the date of death, should be filed with the Vermont Department of Taxes, along with payment for any tax due.
To claim an income refund on the deceased taxpayer’s behalf, attach one of the following documents to Form IN-111:
- Probate court certificate showing your appointment as administrator or executor (not needed if you are the surviving spouse) or
- Vermont Form 176, Statement of a Claimant to Refund Due on Behalf of Deceased Taxpayer or
- Federal Form 1310, Statement of a Person Claiming Refund Due a Deceased Taxpayer