How do I file a California state income tax return for a family member who has passed away?

To file a final California tax return for a deceased person, the estate's court-appointed representative or surviving spouse must file a standard Form 540 for the year of death, indicating that the taxpayer is deceased. Here are the steps to file a decedent's final state tax return: Step 1: Identify Who Must File The court-appointed executor or administrator of the estate is responsible for filing. If no one is appointed, a surviving spouse or another person responsible for the deceased's property can file the return. Step 2: Gather All Necessary Documents You will need the deceased person's Social Security number, a copy of the death certificate, and all income records from January 1 up to the date of death. These include W-2s, 1099s, and records of any other income or deductible expenses. Step 3: Complete the Final Tax Return Use the California Resident Income Tax Return (Form 540). At the top of the form, clearly write "DECEASED," the decedent’s name, and the date of death. The return should only report income and deductions for the period the person was alive during the tax year. Step 4: Sign and File the Return The court-appointed representative must sign the return and write "Filing as representative" next to their signature. Attach a copy of the death certificate. The return is due by April 15 of the year following the person's death. Mail it to the address listed in the Form 540 instructions. Step 5: Claim a Refund or Pay Tax Due If a refund is due, you must file Form FTB 3545, e-file and Direct Deposit for Decedent, or attach a copy of the court document certifying your appointment (e.g., Letters Testamentary) to claim it. Any tax owed must be paid from the estate's assets. Important considerations: If the estate earns income after the date of death (e.g., from investments), you may also need to file a separate California Fiduciary Income Tax Return (Form 541). Under California Revenue and Taxation Code Section 19513, the fiduciary must also provide the Franchise Tax Board (FTB) with notice of their fiduciary relationship. Note: This process is for California state taxes only and does not cover federal tax obligations. The complexity increases significantly with large or intricate estates. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney or a certified public accountant.