Start With the Final Individual Return
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.
Consider the Estate’s Income
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.
Determine if an Estate Tax Return Is Needed
This is where New York State Estate Tax Return requirements step on the stage. If the estate’s total value exceeds $7.16 million in 2025, a return should be filed leveraging Form ET-706.
Filing obligations is a must in the case of:
- The deceased was a non-resident who owned property in New York
- The gross estate includes New York real estate or personal property as well as tangible assets
New York imposes an estate tax, but not an inheritance tax, so the estate pays—not the beneficiaries.
Important Documents to Gather
The following elements should be gathered in order to prepare the filing:
- Form ET-706
- Death certificate
- Will and trust documents
- Appraisals and asset values
- Statements for bank and investment accounts
- Records of debts, funeral costs, and fees
Deadline Reminder
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. If you have concerns about your obligations, contact Dimov NYC CPA today.
