Tips to save money on your tax return this year
Are you feeling stressed during tax season? Don’t worry. TurboTax CPA Lisa Greene-Lewis shares tips to make the filing process easier.
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Losing a loved one is hard enough, but there is evidence that some people are forced to deal with the IRS for more than a year afterwards.
After someone died, from January 2021 to July 2024, it took the IRS an average of 444 calendar days to issue a refund to the deceased’s beneficiaries, according to a report last year from the Treasury Department’s Inspector General for Tax Administration (TIGTA). By comparison, the IRS says it takes most Americans 21 days to receive their refund using e-filing and direct deposit during the regular tax season.
Like everyone else, the families of those who have passed away may expect reimbursement to offset costs, including those associated with closing an estate or adding to an inherited estate, experts say. As of July 2024, the IRS reported 440,443 cases where refunds were owed to the accounts of deceased taxpayers. The total amount of refunds exceeded $1.3 billion. 9% of repayment deadlines were more than 2 years old, 43% were within 1 to 2 years, and 49% were within 1 year.
“The loss of a loved one is difficult and filing a tax return during difficult times should not be an unreasonable burden,” the National Tax Advocacy Association (NTA), an independent ombudsman for taxpayers, said in a blog post.
Why does it take so long to receive a refund after death?
IRS Form 1310, for claiming a federal tax refund on behalf of a deceased taxpayer, must often be filed with the deceased person’s tax return, unless the person is a surviving spouse filing a joint original or amended return seeking a refund, or a court-confirmed personal representative.
According to TIGTA, Form 1310 initiates a manual process within the IRS for processing refunds, and manually processing refunds can create bottlenecks.
What is being done to expedite refunds?
The IRS has reduced its backlog. According to the NTA, as of August 2025, more than 70% of the backlog has been cleared and approximately 1,100 returns are awaiting processing.
Additionally, for this year’s 2025 tax return, the IRS has implemented a program that eliminates or significantly reduces the need for manual refunds for deceased taxpayer refund claimants, TIGTA said. Changes include allowing systematic refunds when a Form 1310 is completed or other missing information is secured, the ability to find and prioritize past-due cases, and enhanced employee training to process death filings.
What can Americans do before they die to ease the burden?
While they can’t control the process at the IRS or the financial institutions that need to request the information, there are steps people can take to speed up the tax filing process, experts say.
Colleen Kirkone, director of wealth planning strategies at TIAA, said one of the biggest hurdles for people is finding the information they need to prepare a tax return after death.
“Previously, all tax returns were received by mail, so the person filing on behalf of the decedent could simply wait for the mail to arrive and ensure they had all of the decedent’s tax information,” she said. “Many tax forms are now accessible online, making it difficult to know what information exists and how to access it.”
To help survivors feel better, experts recommend taking the following steps while you’re still alive.
- Keep detailed records. Lists all the information you need to file a tax return and how to obtain it after your death. “One of the greatest gifts you can give your beneficiaries is to have an up-to-date will and the whereabouts of all your accounts organized so you don’t have to spend a lot of time looking for everything,” says Tyler End, CEO and co-founder of retirement advisory firm Retirable.
- Combine accounts: Fewer bank and investment accounts mean fewer forms and input on your tax return, simplifying the filing process. “Plus, having fewer accounts may make it easier to manage your finances,” Carcone said.
- Make a list of contacts who can help you: Contact information for professionals, such as accountants and financial advisors, who can get you the information you need and help you file your tax return. “It may be worth having a CPA (certified public accountant) help you get through this,” End says. “This is not a car tax declaration.”
- Work with qualified professionals: They can guide you and your loved ones through complex financial decisions and tax issues during your lifetime and make the process more manageable after your death. “Financial advisors are like the quarterbacks of the financial ecosystem,” End said. “It can be a resource for everything you own, including life insurance, bank accounts, investment funds, and more.”
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
