Federal estate income tax: when the estate must file (Alaska)

Short answer: The estate must file a federal fiduciary income tax return (Form 1041) only if the estate has gross income of $600 or more during the tax year, or if the estate has a beneficiary who is a nonresident alien. If the estate produced no income after death and had no nonresident-alien beneficiaries, you generally do not need to file Form 1041. Alaska does not have a state estate or inheritance tax, so there is normally no separate Alaska estate tax return to file.

Detailed answer — what to check and why

Executors, personal representatives, and administrators start by dividing tax responsibilities into two time periods:

Decedent’s final individual return: The decedent’s income earned up to the date of death must be reported on the decedent’s final Form 1040 (or Form 1040‑SR). The person handling the estate usually files that return and reports income received before death.
Estate (post‑death) income: Income generated by the estate after the date of death (interest, dividends, rents, business income, capital gains on sales of estate assets, etc.) is potentially reportable on Form 1041, “U.S. Income Tax Return for Estates and Trusts.” Whether you must file depends on two simple tests explained below.

When Form 1041 is required

The IRS requires an estate to file Form 1041 when either of these is true:

The estate has gross income of $600 or more for the tax year. Gross income includes interest, dividends, rental income, business income, and gains realized on sales of estate property after death.
The estate has a beneficiary who is a nonresident alien.

These filing rules are explained in the IRS guidance for estates and trusts and in the Form 1041 instructions. See IRS: “Estates and Trusts” and “About Form 1041.” (https://www.irs.gov/businesses/small-businesses-self-employed/estates-and-trusts and https://www.irs.gov/forms-pubs/about-form-1041)

What if the estate had no distributions?

Whether the estate made distributions to beneficiaries does not change the filing threshold for Form 1041. The key is whether the estate itself received reportable income after death. If the estate earned less than $600 in gross income during the estate’s tax year and has no nonresident-alien beneficiaries, the estate is generally not required to file Form 1041 even if there were no distributions.

Common situations that do create a filing obligation

Bank accounts continued in the estate that earn interest above $600 in a year.
Sale of estate assets that produces capital gains after death.
Rental property held by the estate that produces rental income.
Dividends or business income received by the estate.
A beneficiary who is a nonresident alien (this triggers filing even if gross income is below $600).

Other federal filings and administrative steps you may need

Obtain an Employer Identification Number (EIN) for the estate if you need to file Form 1041, open estate bank accounts, or otherwise act as the estate’s taxpayer identification. Apply online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
File Form 56 (Notice Concerning Fiduciary Relationship) to notify the IRS that you are the estate fiduciary if appropriate: https://www.irs.gov/forms-pubs/about-form-56
Prepare and keep accurate accounting: even when you don’t file Form 1041, keep records of estate income and expenses, bank statements, and receipts. If later audit or questions arise, documentation will make it easier to show that no filing was required.
Prepare K‑1s (Schedule K‑1) for beneficiaries if you do file Form 1041 and there are distributable net income items passed through to beneficiaries.

Alaska-specific tax notes

Alaska does not impose a state estate tax or inheritance tax. That means you typically will not have a separate Alaska estate tax return to file. For general Alaska tax information, see the Alaska Department of Revenue: https://www.tax.alaska.gov/

Practical steps to confirm whether you must file

Gather estate financial records from the date of death onward (bank and brokerage statements, rental ledgers, business receipts, records of asset sales).
Compute gross income received by the estate during the estate tax year.
If gross income is $600 or more, or any beneficiary is a nonresident alien, plan to file Form 1041 and obtain an EIN first.
If gross income is under $600 and there are no nonresident beneficiaries, keep records and a simple memo explaining why you did not file (to support the decision if questioned later).
File the decedent’s final Form 1040 for income up to the date of death even if you do not file Form 1041.

Helpful links and authorities

IRS — Estates and Trusts overview: https://www.irs.gov/businesses/small-businesses-self-employed/estates-and-trusts
IRS — About Form 1041: https://www.irs.gov/forms-pubs/about-form-1041
IRS — Apply for an EIN (Form SS-4): https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
IRS — Form 56: https://www.irs.gov/forms-pubs/about-form-56
U.S. Code (general filing rules for individuals and fiduciaries): U.S. Code Title 26 resources via govinfo: https://www.govinfo.gov/app/collection/uscode/2020/title26
Alaska Department of Revenue (state tax information): https://www.tax.alaska.gov/

Helpful Hints

Do not assume no filing is required without checking all sources of post‑death income — small interest payments can push an estate over the $600 threshold.
If you expect to sell estate assets, remember gains on sales after death count as estate income and can trigger a filing requirement.
Obtain an EIN early if you think the estate will have income or if you must file any federal forms in the estate’s name.
Keep written notes and copies of records showing why a return was not filed — that documentation can protect you as fiduciary if questions arise later.
When in doubt, consult a qualified tax professional or attorney familiar with estate administration and federal fiduciary tax rules; errors can create personal liability for the fiduciary.

Disclaimer: This article explains general federal and Alaska tax principles for educational purposes only. It is not legal or tax advice. For advice about a particular situation, consult a licensed tax professional or attorney.