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

Find out which tax returns you need to file after someone dies. See state-specific forms, deadlines, and whether tax clearance is required.

More than the returns? Settle the estate in one place.

State

Approximate Estate Value

Estate earns income

Interest, dividends, rent, or other income received after date of death

Vermont Tax Filing Checklist

2 filings required

0 of 2 completed0%

Tax Clearance Required Before Distribution

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).

Form: E-2A (Vermont Estate Tax Information and Application for Tax Clearances)

More Information

Federal

File final income tax return

A final federal income tax return is required for income earned from January 1 through the date of death.

Form: IRS Form 1040

Deadline: April 15 following year of death

Write "DECEASED," the decedent's name, and the date of death across the top of the return. If filing jointly with a surviving spouse, include both incomes. Attach Form 1310 to claim a refund, unless you are the surviving spouse filing a joint return or a court-appointed personal representative attaching a copy of the court certificate to the original return.

Download Form File Online

File estate income tax returnNot required

IRS Form 1041 is only required if the estate earns $600 in gross income or more during administration.

File estate tax returnNot required

The estate value ($0) is below the federal exemption of $15,000,000. IRS Form 706 is generally not required.

Vermont

File final income tax return

A final state return is required for income earned through the date of death.

Form: IN-111 (Vermont Income Tax Return)

Deadline: April 15 following year of death

File IN-111 for income earned January 1 through date of death; check the deceased-taxpayer box for the taxpayer or spouse/civil union partner who died during the year. Rates: 3.35%–8.75% (top rate at $256,300 single, TY2026 Schedule X). To claim a refund on the decedent's behalf, the administrator or executor attaches the Certificate of Appointment issued by the Probate Court OR a completed federal Form 1310 (IN-111 Instructions). Surviving spouse may file jointly. Due April 15 following the year of death; a federal extension is accepted (no separate Vermont extension needed) and moves the filing date to Oct. 15 — Form IN-151 is required only if remitting an extension payment. An extension of time to file does not extend the time to pay. Filing requirement: 32 V.S.A. § 5861; rates: 32 V.S.A. § 5822.

Download Form File Online

File estate income tax returnNot required

A fiduciary return is only required if the estate earns income above the filing threshold (Required if the estate must file federal Form 1041 AND has more than $100 of Vermont income or $1,000+ gross income from Vermont-source categories — 32 V.S.A. § 5861; FIT-161 instructions (tax.vermont.gov)).

File estate tax returnNot required

The estate value ($0) is below Vermont's exemption of $5,000,000.

This tool provides general information about tax filing requirements after death. Tax situations vary based on individual circumstances. Consult a licensed tax professional or CPA for advice specific to your situation.

Frequently Asked Questions

At minimum, a final federal income tax return (Form 1040) and a final Vermont income tax return (IN-111 (Vermont Income Tax Return)) must be filed for income earned through the date of death. If the estate earns income during administration, a federal fiduciary return (Form 1041) and Vermont fiduciary return (FIT-161 (Vermont Fiduciary Return of Income)) may also be required. Estates exceeding $$5,000,000 must also file a Vermont estate tax return.

The final federal and Vermont income tax returns are due april 15 following year of death. 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). 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. 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.

Tax Filing After Death in Vermont

Tax obligations in Vermont include filing the deceased's final state and federal income tax returns. If the estate generates income (interest, dividends, rent) before distribution, a fiduciary return is also required. A federal estate tax return (Form 706) is required only for estates above the federal exemption of $15,000,000.

Vermont imposes a state estate tax on estates exceeding $5,000,000. This threshold is separate from the federal exemption, so some estates owe state tax even when no federal tax is due. The Vermont death tax calculator estimates the combined liability.

Missing tax deadlines can result in penalties and interest that reduce the estate's value. The estate settlement plan for Vermont includes all filing dates so nothing is overlooked.