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The last tax return for the deceased - A death always poses great challenges for the relatives. In addition to the mourning, there are also numerous tasks. One of them: The tax office usually wants a final tax return. What's more: "All tax rights and obligations of the deceased are passed on to the heirs," says Bernd Werner, board member of the wage tax assistance for employees e.V., wage tax assistance association, based in Gladbeck.

There are many challenges for the bereaved, including in many cases the last tax return for the deceased. Image: stux – pixabay.com

The most important questions about the last tax return for the deceased

The most important tax questions that survivors and heirs ask themselves about the last tax return for the deceased:

Table of contents

You should pay attention to this when making the last tax return for the deceasedBy when the relatives have to make the last tax return for the deceasedIn which cases the last tax return for the deceased is "worth it"The last tax return for the deceased for several yearsChoice of tax classes, widow splitting and the most recent tax return for the deceasedMore important details about the most recent tax return for the deceased

You should pay attention to this when making the last tax return for the deceased

When it comes to the topic of the last tax return for the deceased, one of the initial questions is: Did the deceased take care of his tax matters regularly? It doesn't have to have anything to do with tax fiddling. Rather, this happens again and again with pensioners, for example, because they had assumed until recently that they would not have to pay any taxes and also not have to file a tax return.

Resolving this question is important. Because depending on the circumstances, it can be very time-consuming to collect all the documents. This means: If the relatives have to file the last tax return for the deceased, or even fill out the tax forms for years that are further back, then you should start working with the tax returns as early as possible.

By when the relatives have to file the last tax return for the deceased

The following principle is also important for the surviving dependents: All tax rights of the deceased, but also his obligations, are transferred to the heirs.

This means: If the deceased had taxable income to the end, then the relatives must submit a tax return to the tax office in any case. If the tax office demands that a tax return be submitted, the surviving dependents must also take action in this case. Of course, this also applies in the event that the tax authorities request tax returns for previous years.

Basically, tax law gives family members more time to submit their tax returns. The deadline for submission is July 29, but in the year following the death.

In which cases the last tax return for the deceased is "worth it"

If the deceased was not subject to compulsory assessment, i.e. he did not have to submit a tax return at all, then it can often even be worthwhile to fill out the applications. The prerequisite for this is that the deceased has paid taxes. In this case, the heirs should definitely check whether there are any expenses that reduce the tax burden. These include, for example:

These and other expenses can reduce the tax burden and thus lead to a refund.

The relatives can also expect a refund if the deceased was still employed. In these cases, too much wage tax has usually been withheld. The heirs then receive a refund from the tax office for the overpaid taxes.

The last tax return for the deceased for several years

If the last parent has died, it can happen again and again that the children have to submit a tax return to the tax office for several years.

Because many pensioners are still unaware that they are liable to pay taxes. The reason for this is that the full amount of the annual pension increases is allocated to the taxable portion of the pension. Over the years, a tax liability may have arisen again.

If this is the case, the surviving dependents usually have to reckon with additional tax payments. Sometimes there are even significant additional payments on the way.

Bernd Werner: "We experience this again and again in the counseling center practice. In this respect, it can make sense to check whether the inheritance should be accepted at all.”

The consumer advice center writes about the disclaimer:

The explanation for this is that the pension insurance – in contrast to employers – does not deduct wage tax.

Tax class selection, widow splitting and the last tax return for the deceased

If the spouse or registered partner dies, then in the year following the death, the partner receives what is popularly known as the widow splitting. However, widow splitting only applies if the partners were assessed together.

The procedure gives the surviving partner some tax advantages. For example, twice the basic allowance is granted. On the other hand, the lump sums for income-related expenses, special expenses, savings lump sums, etc. are not doubled.

Surviving spouses should also pay attention to the tax bracket. If the partners were jointly assessed, the tax office automatically places the surviving dependent in tax class 3 in the year following the death. After that, however, the tax office usually automatically classifies the surviving dependents in tax class 1.

This automatism can be disadvantageous. For example, if there is an underage child living in the household. In this case, the surviving partner must take action himself and apply for tax class 2 at the tax office. Important: A deadline must be observed here. Because changing to tax class 2 is only possible until November 30 of the year following the death. In tax class 2, those affected can claim the relief amount for single parents.

Further important details on the last tax return for the deceased

If the deceased lived in a different place than the relatives, "his" tax office remains responsible. The relatives or heirs must therefore address all forms, applications or inquiries to the so-called "resident tax office" of the deceased.

If the deceased leaves behind several heirs, the tax obligations and rights pass to the community of heirs. The heirs must appoint a proxy and apportion the tax liability or tax refund.

Sometimes the relatives have to obtain documents. In principle, for example, the tax office is obliged to provide information to heirs. This also applies to all authorities, to former employers and to banks. If in doubt, check whether you are applying for a certificate of inheritance. However, there are fees for this, which are based on the amount of the inheritance. You can apply for the certificate of inheritance at the probate court, usually the district court.

"Mourning requires all your strength," says Bernd Werner and advises: "It makes sense not to burden yourself with tax matters. We recommend that surviving dependents contact an income tax assistance association or a tax advisor.”

Further topics: Pension increase 2020 - More and more pensions are taxed Deduct household-related services - This is how you can save taxes