Jan222026
Probate Q&A Series

Do I need to file income taxes for a deceased parent who only received monthly benefits and had little or no other income? – North Carolina

Short Answer

Sometimes, but not always. In North Carolina, a deceased parent’s final state income tax return is generally required only if the parent’s gross income for the year exceeded the filing threshold (which is tied to the standard deduction) or if the North Carolina Department of Revenue requires a return. Separately, the estate may need its own “fiduciary” income tax return if the estate earns taxable income during administration and federal law requires a fiduciary return.

Understanding the Problem

In North Carolina probate, the personal representative (executor or administrator) often needs to confirm whether a deceased parent had to file a final personal income tax return and whether the estate itself has any income tax filing obligations before the estate can be closed. The decision point is whether the deceased parent’s “monthly benefits” and any other income trigger a required final return for the year of death (and possibly prior years), and whether income earned after death belongs to the estate and triggers a separate estate income tax return.

Apply the Law

North Carolina generally follows federal concepts of “gross income” to decide whether an individual must file a North Carolina income tax return. If the decedent was required to file while living but died before filing, the personal representative must file the return in the decedent’s name and the tax is payable by the estate. During administration, the estate can also be a separate taxpayer; if the estate has taxable income and federal law requires a fiduciary return, North Carolina requires a fiduciary return as well, typically due April 15 for calendar-year estates (or the 15th day of the fourth month after a fiscal year ends).

Key Requirements

  • Was a final individual return required?: A North Carolina final return is generally required if the decedent’s gross income for the year exceeded the filing threshold (tied to the standard deduction) or if the Department of Revenue specifically requires a return.
  • Who is responsible for filing?: If a return is required and the taxpayer died before filing, the personal representative (executor/administrator) files on the decedent’s behalf and the estate pays any tax due.
  • Did the estate earn taxable income after death?: If the estate earns taxable income during administration and is required to file a federal fiduciary return, North Carolina generally requires a state fiduciary return too, with its own due date rules.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the estate cannot be finalized until a tax advisor reviews records and confirms whether a final individual return is required and whether the estate has any fiduciary filing obligation. If the deceased parent truly had only “monthly benefits” and little or no other income, the key question is whether those benefits counted as gross income for filing-threshold purposes and whether any other items (like retirement distributions, interest, dividends, or required minimum distributions) pushed income above the threshold. Separately, even if the parent did not need a final individual return, the estate may still need a fiduciary return if it earned income during administration (for example, interest on an estate bank account) and federal law requires a fiduciary filing.

Process & Timing

  1. Who files: The personal representative (executor/administrator). Where: The North Carolina Department of Revenue for state income tax filings; the Clerk of Superior Court (Estates Division) for probate closing filings. What: A final North Carolina individual income tax return if required; and, if applicable, a North Carolina fiduciary income tax return for the estate. When: Fiduciary returns are generally due April 15 for calendar-year estates (or the 15th day of the fourth month after a fiscal year ends).
  2. Record review: The personal representative (often with a tax advisor) gathers year-of-death income documents and confirms what income was the decedent’s versus what income belongs to the estate after death. This step often controls how quickly the estate can move to a final accounting.
  3. Probate closing: After taxes are addressed (returns filed if required, refunds/amounts due handled), the personal representative completes the final accounting/closing process with the Clerk of Superior Court so the estate can be closed and the personal representative discharged.

Exceptions & Pitfalls

  • “Monthly benefits” can be treated differently depending on the type: Some benefits may be fully or partly taxable under federal rules (which North Carolina generally tracks), while others may not be. The label “benefits” alone is not enough to confirm a filing requirement.
  • Overlooking income paid after death: Income received after death may be estate income (not the decedent’s), which can create a fiduciary return requirement even when the decedent’s final return is not required.
  • Missing prior-year filings: If the decedent should have filed for earlier years but did not, the personal representative may need to address those before closing.
  • Refund handling: If a refund is due, the estate may need to claim it in the proper name and route it into the estate administration, which can delay closing if not planned early.
  • Delays in estate settlement: North Carolina personal representatives have a duty to settle the estate within a reasonable time, and tax uncertainty is a common reason estates stay open longer than expected.

Conclusion

In North Carolina, a deceased parent’s final personal income tax return is generally required only if the parent’s gross income exceeded the filing threshold (tied to the standard deduction) or if the Department of Revenue requires a return, and the personal representative files it on the decedent’s behalf. Separately, the estate may need a fiduciary income tax return if it earns taxable income during administration and federal law requires a fiduciary filing, typically due by April 15 for calendar-year estates. Next step: have the personal representative gather income records and confirm required filings before submitting the final account to the Clerk of Superior Court.

Talk to a Probate Attorney

If a family is dealing with an estate that cannot be closed until final income tax filing questions are resolved, our firm has experienced attorneys who can help explain the probate steps, coordinate with a tax advisor, and keep the estate on track with court requirements. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.