How Do I File Taxes for a Deceased Person in Vermont?

The final federal and Vermont income tax returns are due april 15 following year of death.32 V.S.A. §§ 5822, 5861, 7402(14)(C), 7442a, 7444, 7446, 7454Verified Jul 13, 2026 The fiduciary return is due 15th day of the 4th month after close of tax year (april 15 for calendar-year estates); 5.5-month extension — federal extension accepted, form fit-168 needed only to remit an extension payment (fit-161 instructions).

Yes. Vermont requires a tax clearance before an estate is closed. 32 V.S.A. § 7454 bars the final discharge of an administrator, executor, or trustee until the taxes are paid and a receipt issued by the Commissioner is filed with the Probate Division, and bars allowance of the final account until the judge of probate finds all income taxes have been paid. Clearance is requested on Form E-2A (Vermont Estate Tax Information and Application for Tax Clearances). Per the E-2A Instructions, the decedent's final Vermont income tax return and all required Vermont fiduciary returns (except the final one) must be on file, and any required Form EST-191 filed, before clearance issues: "The Vermont Department of Taxes will not issue the tax clearance until tax returns are filed and taxes paid, or a copy of this application is filed verifying that no taxes are due." The Probate Division notifies the Commissioner when letters of administration are granted (32 V.S.A. § 7449).32 V.S.A. §§ 5822, 5861, 7402(14)(C), 7442a, 7444, 7446, 7454Verified Jul 13, 2026 Distributing assets without clearance may create personal liability for the executor or trustee.

Yes. Vermont imposes a state estate tax on estates exceeding $$5,000,000.32 V.S.A. § 7442aVerified Jul 13, 2026 This is separate from the federal estate tax. Estates above the state threshold must file a state estate tax return even if no federal estate tax is owed. See the full breakdown with the Vermont death tax calculator.

Yes. Estate size does not affect the requirement to file a final income tax return. A final Form 1040 is required regardless of estate value if the deceased had income. What smaller estates typically avoid is the federal estate tax return (Form 706) and the Vermont estate tax return (for estates over $$5,000,000).

The executor named in the will (or the court-appointed administrator) is responsible for filing the final income tax return and any estate tax returns. If the deceased was married, the surviving spouse can file a joint federal return for the year of death. For trust assets, the successor trustee handles fiduciary tax returns. The Vermont estate settlement plan covers all filing responsibilities in order.