Report income distributed to beneficiaries; File an amended return for the estate or trust; Claim withholding. Filing a final 1040 – An income tax return needs to be filed for the last tax year the deceased was alive.The undistributed net income of a probate estate of a. Form 706 Federal Estate Tax return. There is no estate tax in California. However, residents may have to pay a federal estate tax. Find common questions and answers about estate taxes, including requirements for filing, selling inherited property and taxable gifts. IRS Form 1040​​ The executor of a California estate is typically required to file Form 1040 for any deceased person who earned an income before passing away.