Final IT-201
Covers income earned Jan 1 of the year of death through the date the taxpayer passed.
Three filings to consider
Form 1041 (federal)
Required if the estate earns $600+ during administration. NY does not require a separate state estate income tax return.
ET-706 if > $7.16M
2025 threshold for NY estate tax. Non-residents with NY property also file. Nine months from date of death.
Introduction
Executor’s job — start early, keep records tight
Managing taxation processes upon someone’s passing is not easy. However, recognizing specific obligations early can present aid in the context of correct submission. In New York, the executor or personal representative of the estate is generally the one responsible for managing final tax filings.
01Filing 1
Start with the final individual return
Final return
IT-201
The initial step is filing the final personal income tax return (Form IT-201) on behalf of the deceased. This covers income earned from January 1 of the year of death up to the date they passed. If the decedent had lived in New York, the state necessitates this form even if there is little or no income.
02Filing 2
Consider the estate’s income
Federal 1041
$600+
If the estate earns $600 or more during its administration — like from interest or dividends — Federal Form 1041 should also be filed for the estate itself.
New York does not require a separate state estate income tax return. Yet, it does necessitate proper handling of income attributed to the estate.
03Filing 3
Determine if an estate tax return is needed
This is where New York State Estate Tax Return requirements step on the stage.
NY estate tax threshold
$7.16M
2025
If the estate’s total value exceeds $7.16 million in 2025, a return should be filed leveraging Form ET-706.
Filing obligations are also required if:
- The deceased was a non-resident who owned property in New York
- The gross estate includes New York real estate or personal property, plus tangible assets
New York imposes an estate tax, but not an inheritance tax — so the estate pays, not the beneficiaries.
04Prep list
Important documents to gather
These should be gathered in order to prepare the filing.
Form ET-706
Death certificate
Will and trust documents
Appraisals and asset values
Bank and investment account statements
Records of debts, funeral costs, and fees
05Deadline
Nine months from date of death
9 months
from date of death
The Form ET-706 should be submitted within nine months of the date of death. If necessary, an extension can be requested — but payment is still due by the original deadline.
An extension of time to file does not extend the time to pay.
Executor overwhelmed?
If you have concerns about your obligations, contact Dimov NYC CPA today. Call (212) 641-0673 or send the contact form.
12+ years
serving NYC
150,000+
returns filed
5 star
Google and Yelp
Open
evenings and weekends
From the record
On estate settlement
“You’ve already paid tax on this money when you are earning it actively, and then all of a sudden it gets taxed again when it goes to your child or your grandchild or whoever it’s going to. So proper estate planning is very important.”
George Dimov, CPA
“If I have a tax issue that comes up, I immediately think of George because you’re very responsive and helpful and knowledgeable.”
Kevin
Estate attorney
Handle the filings on time
Nine months goes fast — start the paperwork early
From the final IT-201 to the federal 1041 and NY ET-706, we can prepare and file every return the estate needs. Call (212) 641-0673 or send the contact form. No charge for the conversation.
Reviewed by George Dimov, CPA, New York, NY. Serving clients in all 50 states, 15+ years advising executors and administrators on estate settlement and tax filings. President of George Dimov, CPA, a New York City firm serving clients across the five boroughs and nationwide.