Short Answer

Yes. In North Carolina, the personal representative must file the decedent’s final federal and state individual income tax returns for the year of death. You may also need to file fiduciary income tax returns for the estate if it earns income after death or if you make distributions. North Carolina has no state estate tax for deaths on or after January 1, 2013. A federal estate tax return is required only if the estate exceeds the federal filing threshold or to elect portability of any unused federal exclusion.

Understanding the Problem

You are asking whether, in North Carolina, you must file your late spouse’s personal income tax returns and whether an estate tax return is required. You are the surviving spouse serving as the court‑appointed administrator of an intestate estate. The issue is what tax filings you, as administrator, must make and when.

Apply the Law

Under North Carolina law, the administrator is responsible for handling the decedent’s tax matters. That includes filing the final individual income tax returns (federal and state) for the year of death, and any fiduciary income tax returns if the estate earns income after death. Estates are separate taxpayers and need an Employer Identification Number (EIN). North Carolina does not impose a state estate tax for deaths on or after January 1, 2013. A federal estate tax return (Form 706) is due only if the gross estate plus adjusted taxable gifts exceeds the federal filing threshold for the year of death or if you choose to elect portability.

Key Requirements

• Final personal returns: File your spouse’s final federal Form 1040 and North Carolina Form D‑400 for the year of death by the normal individual due date (extensions available).
• Estate EIN and separate taxpayer status: Obtain an EIN for the estate; the estate reports post‑death income separately.
• Fiduciary income tax returns (estate income): File federal Form 1041 (and NC Form D‑407) if the estate has gross income over $600, has a nonresident alien beneficiary, or if you make any distributions to beneficiaries during the estate’s taxable year.
• Filing periods and deadlines: Form 1041/D‑407 are due by the 15th day of the fourth month after the end of the estate’s chosen fiscal year; extensions are available (IRS Form 7004 and NC Form D‑410P).
• Federal estate tax (Form 706): Required only if the estate exceeds the federal threshold or to elect portability of unused exclusion; due nine months after death (extensions available).
• No North Carolina estate tax: For deaths on or after January 1, 2013, no NC estate tax return is required.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-13-3 (Powers and duties of personal representative) – Includes the duty to collect assets, pay claims and taxes, and otherwise administer the estate.
• North Carolina Gen. Stat. § 105-160.2 (Tax on estates and trusts) – Explains when estates owe North Carolina income tax and how beneficiary residency and NC-source income affect filing.

Analysis

Apply the Rule to the Facts: As administrator of your spouse’s intestate North Carolina estate, you must file your spouse’s final federal and state individual returns for the year of death. Because the estate holds bank and brokerage assets, it will likely earn interest or dividends after death; if gross estate income exceeds $600 in its taxable year or if you make any distributions, you must file Form 1041 and NC Form D‑407. North Carolina imposes no estate tax for recent deaths, and a federal estate tax return is only needed if the estate is large enough or if you want to elect portability.

Process & Timing

1. Who files: The administrator. Where: IRS and North Carolina Department of Revenue; estate filings with the Clerk of Superior Court continue for probate administration. What: Final Form 1040 and NC D‑400 for the decedent; obtain an EIN for the estate; consider Form 706 for federal estate tax/portability. When: Final individual returns are typically due by April 15 of the year after death (use IRS Form 4868 for extension).
2. Estate income returns: Choose an estate fiscal year. If required, file Form 1041 by the 15th day of the fourth month after the fiscal year ends (extend with IRS Form 7004). File NC Form D‑407 on the same schedule (extend with NC Form D‑410P). If the estate remains open two or more years, be aware of federal estimated tax requirements for estates.
3. Estate tax (if applicable): If the estate exceeds the federal threshold or you are electing portability, file Form 706 within nine months of death (an extension is available). There is no NC estate tax filing for deaths on or after January 1, 2013.

Exceptions & Pitfalls

• Portability deadline: Missing the nine‑month Form 706 deadline can forfeit your ability to transfer unused federal exclusion to the surviving spouse.
• Small income but distributions: Even with minimal income, making any distributions during the estate’s taxable year can trigger a fiduciary return filing requirement.
• EIN mix‑ups: Do not use the decedent’s SSN for estate income; obtain and use an EIN for the estate.
• Multi‑state issues: If the decedent lived or earned income in another state during the year of death, a separate state return may be required there.
• Refund claims: To claim a decedent’s prior‑year or year‑of‑death refund, include Letters of Administration with the return; if no personal representative existed, special IRS forms are required.
• Estimated taxes: If administration continues two or more years, federal estimated fiduciary taxes may be required to avoid penalties.

Talk to a Probate Attorney

If you’re dealing with tax filings after a spouse’s death and need to understand which returns are required and when, our firm has experienced attorneys who can help you understand your options and timelines. 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.