“Dad Passed Away, but His Social Security Kept Arriving.” As a CPA, I Know It Must Be Returned

And yes, Dad probably still needs a final tax return. That’s the only way to recover any tax withheld from his pension.

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Picture a message like this:

“My dad died in October. His Social Security still landed in his bank account in November, and my sister says we should just leave it there. Now I’m also wondering: Does Dad still have to file a tax return? Who signs it? We’re lost.” — Mark

Mark isn’t a real reader. He represents a situation many families encounter after a parent dies, so let’s go through it the way I would for a friend.

I’ve been a CPA since 1981, and I also served as executor for my parents’ estate, so I’ve handled this paperwork from both sides.

First, the bad news for Mark’s sister: Social Security does not pay benefits for the month a person dies, so any payment received the following month must be returned (1).

Second, yes, Dad likely still has a tax return to file. The IRS says the final return is due on the same schedule it would have followed if he were still alive (2).

Even if his income was modest, filing may be the only way to recover tax withheld from a pension, wages or annuities (2).

The IRS says it plainly to whoever files: “It’s your responsibility to pay any balance due and to submit a claim if there’s a refund” (3).

Here are five steps Mark’s family — and maybe yours — should take.

1. Return the Social Security payment

This is the part that often surprises families. Social Security benefits are paid one month in arrears, so a check or direct deposit received in one month is really for the prior month (1).

If Dad died in October, the payment that shows up in November covers October, and it must be sent back (1). If the money was deposited electronically, ask the bank to return the payment for the month of death and any later payments (1).

Do not spend it, and do not let another relative talk you into keeping it. It is not Dad’s money.

2. File Dad’s final tax return

Whether Dad had to file depends on his gross income, age and filing status (2). But if tax was withheld from wages, pensions or annuities, a return is the only way to claim it back (2).

The return is due on the regular deadline, so if the death occurred in 2026, the filing deadline would be the following spring (2). Write “DECEASED,” Dad’s name and his date of death across the top (2).

If Dad also left investments or an IRA, the tax issues can get complicated quickly.

If you’re dealing with a large inheritance or substantial savings, it may be worth getting professional help.

One option is SmartAsset’s free matching service, which can connect you with up to three fiduciary financial advisors who are legally required to put your interests first.

They can help with tax strategy, investment guidance, Social Security planning and gaps in your financial plan you might miss on your own.

The process takes about 10 minutes and asks for a phone number near the end; you decide whether and when to follow up.

SmartAsset provides the match, not the advice, and it is designed for people with $100,000 or more in investments.

3. Determine who signs the return

If a personal representative, such as an executor, has been appointed, that person must sign and file the final return (2). If Mom is still living and files jointly with Dad for the year of his death, she signs as well (2).

If no personal representative has been appointed by the filing deadline, a surviving spouse may file the joint return alone (2).

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4. Claim any refund correctly

If Dad’s final return shows a refund, Form 1310 is usually required to claim it, with two exceptions (2): a surviving spouse filing a joint return, or a court-appointed or certified personal representative filing Dad’s original return with a copy of the court certificate attached (2).

If you are acting as Dad’s fiduciary, you also need to notify the IRS in writing of that role, usually with Form 56 (2).

If the situation goes the other direction and Dad owed back taxes, handle that before distributing any assets.

If you need help resolving an IRS balance, you can compare tax relief options and speak with a professional before making a decision.

5. Check whether the estate must file its own return

Dad’s estate may be treated as a separate taxpayer. A decedent’s estate must file Form 1041 if it has gross income of $600 or more during the tax year (4).

In my view, that threshold is low enough that it is worth checking before assuming the estate is too small to matter.

My honest take

When a parent dies, no one wants to think about the IRS or Social Security. I understand that. But skipping these steps can cost families money, and the deadlines begin immediately.

Make a list. Return what must be returned. Then tackle the tax deadlines one at a time.

And do one more thing: get your own paperwork in order so your children never have to write a note like Mark’s.

Sources: 1. USA.gov; 2. IRS Publication 559; 3. IRS; 4. IRS Instructions for Form 1041