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

Vermont requires a final state income tax return for the decedent alongside the federal Form 1040; a federal estate tax return (Form 706) is required only for estates above $15,000,000.

State

Approximate Estate Value

Estate Earns Income

YesNo

Date of Death

Two returns are due.

IRS Form 1040 and IN-111 (Vermont Income Tax Return).

Federal

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
Due: 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.

IRS Form 1040 File online

Vermont

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)
Due: 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).

IN-111 (Vermont Income Tax Return)

Tax clearance

Vermont requires tax clearance before distribution

Vermont requires a tax clearance before an estate is closed.

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

Vermont tax clearance

Not required

Federal estate income tax return: IRS Form 1041 is only required if the estate earns $600 in gross income or more during administration.
Federal estate tax return: The estate value ($0) is below the federal exemption of $15,000,000. IRS Form 706 is generally not required.
Vermont estate income tax return: 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)).
Vermont estate tax return: The estate value ($0) is below Vermont's $5,000,000 filing threshold. Vermont's filing test uses the gross estate plus lifetime taxable gifts, and filing is also required whenever a federal estate tax return is due.

General information about tax filing requirements after a death, not tax or legal advice. Consult a licensed tax professional for tax questions. Data verified Sep 15, 2026

At minimum, a final federal income tax return (Form 1040) for income earned through the date of death, and Vermont requires a final state income tax return (IN-111) as well. If the estate earns income during administration, a federal fiduciary return (Form 1041) and a Vermont fiduciary return (FIT-161) may also be required. A Vermont estate tax return must also be filed when the federal gross estate plus lifetime taxable gifts made within two years of death exceeds $5,000,000, or whenever a federal estate tax return is required, a test on the gross estate that can be met even where deductions mean no tax is due.

The final federal income tax return is due April 15 following year of death. The final Vermont return is due April 15 following year of death. The Vermont fiduciary return is due 15th day of the 4th month after close of tax year. The Vermont estate tax return (EST-191) is due 9 months after date of death (32 V.S.A. § 7446; EST-191 instructions).

Yes. Vermont requires a tax clearance before an estate is closed. Distributing assets without the clearance can leave the executor or trustee personally liable.

Yes. Vermont imposes a state estate tax on an estate above $5,000,000. It is separate from the federal estate tax. A state estate tax return must be filed when the federal gross estate plus lifetime taxable gifts made within two years of death exceeds $5,000,000, or whenever a federal estate tax return is required, even if no federal estate tax is owed.

Yes. Estate size does not change the final income tax return: a final Form 1040 is filed whatever the estate is worth if the decedent had income. What a smaller estate avoids is the federal estate tax return (Form 706), due 9 months after date of death (6-month extension available) and required only above $15,000,000 and the Vermont estate tax return (required when the federal gross estate plus lifetime taxable gifts made within two years of death exceeds $5,000,000, or whenever a federal estate tax return is required).

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, and the return-filing test is broader than the exemption — it runs on the federal gross estate plus lifetime taxable gifts, and filing is also required whenever a federal estate tax return is due, so some estates file even though no tax is due. The Vermont death tax calculator estimates the liability.

Missing tax deadlines can result in penalties and interest that reduce the estate's value. The final Vermont income tax return is due April 15 following year of death. The estate settlement plan for Vermont includes all filing dates in order.

SimplyTrust Editorial·Updated September 20, 2026

Legal Sources

26 USC 2001(c), 2010; P.L. 119-21 §70106
26 USC 6012(b)(1)
26 USC 6018; 26 USC 6075(a)
32 V.S.A. § 5822
32 V.S.A. § 7442a
32 V.S.A. §§ 5822, 5861, 7402(14)(C), 7442a, 7444, 7446, 7454

Data sourced from Vermont statutes and official state code. How we research.

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