The wages and amounts withheld must be reported on the deceased employee's Form W-2. If the decedent's estate acquires the interest, the earnings on the account must be included on the final income tax return of the decedent.A surviving spouse should file a joint return for the year of death and write in the signature area "filing as surviving spouse. Payableondeath bank accounts allow a bank to release funds to a named beneficiary on the account holder's death without the beneficiary having to go to court. File the final income tax returns of a deceased person for current and prior years, pay any balance due and claim the refund. File an estate income tax return. In Texas, the deadline for filing a tax return is 9 months after the date of death. Here's what you need to know about the deceased's final tax return, reporting income and deductions, inheritance and more. Texas does not have a state estate tax or inheritance tax. However, Texas residents still must adhere to federal estate tax guidelines.