Do I need to file a federal tax return for an estate if no distributions were made?

Short answer: Possibly — it depends on whether the estate earned income after the decedent’s death and whether the estate meets federal filing thresholds. The presence or absence of distributions to beneficiaries does not by itself determine whether a federal fiduciary (Form 1041) return or a federal estate tax (Form 706) return is required.

Detailed answer — what to check and why

1) Two different federal returns may be involved

Federal fiduciary income tax return (Form 1041): This is the income tax return for an estate or trust. It reports income that the estate received after the decedent’s date of death and taxes attributable to that income.
Federal estate tax return (Form 706): This is the estate tax (transfer tax) return that reports the decedent’s gross estate for estate tax purposes and calculates any federal estate tax due.

2) Form 1041 (estate income tax) — when must you file?

File Form 1041 for the estate if, during the estate’s tax year, the estate:

Has gross income of $600 or more (this is a federal threshold for filing fiduciary returns); or
Has a beneficiary who is a nonresident alien.

Reference: IRS guidance on Form 1041 and filing rules: About Form 1041 (IRS) and Instructions for Form 1041 (IRS).

Key points about income vs. distributions:

Income that the estate earns after death — interest, dividends, rental income, capital gains from sales while the estate is open — counts as the estate’s gross income. If that income reaches $600 in the estate’s tax year, the estate must file Form 1041 even if no distributions were made to beneficiaries.
Income that belonged to the decedent up to the date of death is reported on the decedent’s final individual income tax return (final Form 1040), not on the estate’s Form 1041.
If the estate makes distributions to beneficiaries during the year, a portion of income may shift to beneficiaries and be reported by them (Schedule K-1). But the obligation to file Form 1041 initially is determined by the estate’s gross income threshold and the nonresident alien beneficiary rule, not simply by whether distributions occurred.
If the estate has no income after death (for example, all assets passed directly to beneficiaries by beneficiary designation or by operation of law and the decedent’s assets produced no post-death income), typically no Form 1041 is required.

3) Form 706 (federal estate tax) — when must you file?

File Form 706 if the gross estate (the total value of the decedent’s worldwide assets for a U.S. citizen or resident) exceeds the federal estate tax filing threshold/exemption in effect for the year of death. The threshold (the basic exclusion amount) can change from year to year. If the gross estate is below that threshold, no federal estate tax return is required solely because of the estate’s size.

Reference and filing information: About Form 706 (IRS). The deadline to file Form 706 is generally nine months after the date of death; an extension may be available.

4) Florida-specific points

Florida does not impose a separate state estate tax or inheritance tax. That means you will not file a Florida estate tax return even if you must file a federal Form 706. (Florida estate law and probate procedure are governed by the Florida Probate Code; see Florida statutes, chapter 732–744 for wills and probate administration.) See Florida statutes: Fla. Stat. ch. 732 (Wills) and Fla. Stat. ch. 733 (Administration of Estates).
Although Florida has no estate tax, federal income and estate tax obligations still apply as described above.

5) Other practical filing and tax items to watch

Final individual return: Report the decedent’s income through date of death on the decedent’s final Form 1040. Income after death goes to the estate (Form 1041) unless timely distributed to beneficiaries and required to be reported by them.
Filing deadlines: Form 1041 generally follows fiduciary return deadlines (the 15th day of the fourth month after the end of the estate’s tax year for calendar-year estates). See the Form 1041 instructions for exact dates and extension options.
Record-keeping: Maintain clear records of all post-death income, expenses, and distributions. Even if you don’t meet the $600 threshold now, accurate records help determine future filing obligations and support tax positions.
When in doubt, seek a tax professional: Small estates, especially those with investment accounts, rental property, or business income, can generate reportable post-death income. A CPA or attorney experienced with estates can review the facts and advise whether to file Form 1041 or Form 706.

Example hypotheticals

Hypothetical A — No post-death income, no probate: no Form 1041

Maria named her daughter as beneficiary on a bank account and a payable-on-death (POD) account. All funds pass directly to the daughter on death. The estate administration is not opened, and the decedent’s assets produce no income after death. No Form 1041 is required for the estate because the estate did not earn $600 or more of gross income after death.

Hypothetical B — Estate earns income but no distributions

John’s estate retains ownership of rental property after his death and receives $9,000 in rent in the estate’s first tax year. The estate must file Form 1041 because gross income exceeds $600 even if the personal representative did not distribute funds to beneficiaries.

Hypothetical C — Large gross estate

Sam’s gross estate (including all reportable assets) exceeds the federal filing threshold for the year of death. Even though the estate may owe no state estate tax in Florida, the personal representative must evaluate whether Form 706 is required and, if so, file it within the federal deadline.

Helpful hints

Confirm whether the estate earned any income after death — interest, dividends, rent, business income, or capital gains from asset sales — and total that income for the estate’s tax year.
Remember the $600 rule: if post-death gross income is $600 or more, file Form 1041. If beneficiaries include a nonresident alien, file regardless of the $600 rule.
Report income up to the date of death on the decedent’s final Form 1040, not on Form 1041.
Check the federal estate tax exemption in effect for the date of death before deciding whether Form 706 must be filed; rules and exemption amounts change with time and law.
Florida does not have a state estate or inheritance tax, but federal returns may still be necessary.
Keep careful records and open a separate estate bank account to segregate estate funds from personal funds.
When you’re unsure, consult a Florida probate attorney or CPA who handles estates and trusts to confirm filing obligations and prepare returns if needed.

Key links:

Disclaimer: I am not a lawyer. This article explains general rules under federal tax law and Florida probate practice for educational purposes and is not legal advice. Your situation may turn on facts not covered here. For a definitive answer about filing obligations, consult a licensed attorney or tax professional familiar with Florida probate and federal estate/trust tax rules.